IVA Examples

6 years ago, Ms Jordan had debts of about £5,000; which was manageable.

The she was made redundant when her employers went bust. She didn't get any payments and was unemployed for 5 months while continuing to maintain her rented accommodation in London. Having no savings, she borrow on credit cards to replace lost income.

The managed to find a lower paid interim job for a few month, but it took her 2 years to return to her previous level of income. In this time here debt has grown to £21,000.

For a further 2 year she tried here best to tackle this debt, but the burden of high interest payment saw it rise to a peak of £25,000. She could not afford to maintain anything much more than minumun payments on good months, but when an essential bill arose, she could only turn to her credit cards to find funds.

We are able to negotiate an IVA so she pays back just £214 per month

Having rented with her husband and child whilst married, Ms X already had large, but affordable credit repayments before her divorce. As the household income dropped to a single wage plus benefits and maintenance payments, she could not longer afford what her creditors were asking for.

Failing to take the appropriate action, Mr X tried to borrow her way out of debt, until her sole and joint debts with her ex husband totalled £39,000. She entered into a linked IVA with her ex-husband and agreed to payback £220 per month for 60 months totalling £13,200 over 5 years. Her situation will be reviewed in 12 months time when Ms X hopes to return to full time work as her child reaches school age.

Mr M is single, rents from a private landlord, and has no dependants. He earns about £23,000 a year. At 27 years of age, he has already amassed debts of around £52,000 over 8 years.

Mr M admits his debts are solely the result of his own irresponsibility and indulgences. Everywhere he was offered credit, he took it, mostly making minimum payments. He was now finding these payments difficult.

Mr M agreed to down grade his car to raise £11,000 which also halved his insurance premiums, leaving £41,000 of debt. His creditors accepted an offer of £290 for 60 months, paying back in total £17,400.

The Reed family have 3 children the oldest being 9, and a total debt of £28,000 on loans and credit cards. Their car is on hire purchase, which is needed for Mr Reed to travel to work.

They built up debt over several years of over-spending, thinking Mr Reeds salary would rise and other expenses would lower, enabling them to catch up. This didn't happen and when his overtime ceased, they were not able met their creditor's demands.

They currently pay out £650 per month leaving them with a ever growing overdraft. Their outgoings leave them with no money at the end of each month.

They agreed to repayments of £280 per month for 2 years and £380 in years 3, 4 & 5 as the car hire purchase ends in 2 years. They get to keep the car and have a new Bank account and no overdraft. In total they will pay back £19,600 over 60 months in the IVA's.

• IVAs
• Making a successful IVA Application
• IVAs Wih Joint Debts
• IVAs Compared with alternative solultions
• IVA Examples
• IVA FAQ
• Full & Final Debt Settlement
• IVA fees

Recent Cases. A sample of some of our recent IVA clients.

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