IVA Case Studies
IVA cases, typical of those we have handled.
Examples used are fictitious to protect client privacy.
Case1
Mr and Mrs K have 3 children under 7, and a total debt of £43,000 spread over 5 credit cards, 2 loans and an overdraft. They have a car on H.P. which is essential to travel to work / pick up kids from school.They currently pay out £650 per month leaving a growing overdraft. Their outgoings leave them with no money at the end of the month.
They argreed to repayments of £280 per month for 3 years and £450 in years 4 & 5 as the car H.P. ends in 36 months.
They get to keep the car and maintain a Bank account.
In total they will pay back £20,800 over 60 months and become debt free.
Case2
Mr F was made redundant 2 years ago when his employers went bust. He got no payment and was unemployed for 5 months, causing him to borrow on credit cards to replace lost income.He found new employment only to be laid off again. After a further period unemployed he attempted to consolidate his debts with a bank loan. His credit card borrowing continued to escalate though and his health suffered due to the financial burden. We negotiated an IVA with creditors and he now pays just £300 per month.
Debts of £34,000 will be wiped clear in five years.
Case3
Mr R had £31K on cards & loans, costing over £500 a month on interest alone. His salary didn’t cover the monthly outgoings and the debts just kept growing.After looking into the options he decided to go for an IVA. The creditors agreed that he only need repay just over half of the whole debt.
The interest was frozen and every month he was able to pay a chunk off the agreed lump sum. It was still tough making the payments, but with the debt going down all the time he could manage it and there was always enough left over to meet his family's needs.
It was agreed that Mr R is to pay £305 per month for 60 months - £18,300 in total.
£13,000 will be written off and he will be debt free at the end of the agreement period.