Background: Mr Smith experienced some unfortunate
times and ended up with debts of £31,300.
Solution opted for: IVA
Debts written off: £21,900
(70% of debt)
Reduction in monthly payments of: 770 (73%)
Now paying back £280
instead of £1050
Mr Smith was struggling to meet his minimum payments of
£1050.00 per month. The interest charges were adding
up, he realised that if he didn't do something now
then he would be going bankrupt within a year.
Options:
Mr Smith was in too much debt to consider an debt
management plan or loan consolidation. This really
only left bankruptcy or an IVA. Mr Smith realised
that bankruptcy meant potentially losing his home,
also Mr Smith did not want his predicament to become
public knowledge (all bankruptees and published in
the local paper). Therefore Mr Smith contacted the
iva.co.uk site for help. He completed the IVA wizard
and saw that the IVA was a good solution for him. He
then rang the IVA helpline to receive further
advice. Mr Smith realised at this point that he
definitely wanted to do an IVA, he then contacted
several of the companies on our
recommended IVA
companies list.
Within one month the partner company had negotiated the debts down to
£9,500.00 and stopped all further interest charges.
The creditors had also been informed about the IVA
proposal, this led to less calls to Mr Smith chasing
for money.
Mr Smith and the people he owed money to agreed
to him paying £280.00 a month over a five year
period. Mr Smith was delighted with this outcome and
has now established strict financial budgeting as
part of his daily life. He feels that he has learnt
his lesson.
If you want to see if an IVA is right for you,
please try our IVA Wizard.
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