Mr X unfortunately lost his job in March 21, due to COVID-19, relying on credit and a redundancy payments to cover everyday living costs.
Fortunately, Mr X was able to go self-employed and generate an income however the income did not cover all of the household bills and creditor commitments.
Mr X entered into an IVA, including all of his unsecured creditors, where his payments were reduced down to what was a manageable and affordable level. His monthly payments went from £784 per month down to £156 per month.
At the end of the 60 month period, Mr X will have paid back approximately £9,360 writing off an estimated £23,471
Estimated debt reduced by
Mr G had been struggling for a number of years to pay off his outstanding debts due to the interest and charges, he was taking out new credit cards to pay off the old ones but resuing the available balances.
Mr G entered into an IVA, including all of his unsecured creditors, where his payments were reduced down to what was a manageable and affordable level. His monthly payments went from £948 per month down to £178 per month.
At the end of the 60 month period, Mr G will have paid back approximately £10,680 writing off an estimated £11,571
Estimated debt reduced by
Mrs M had over committed herself, resulting in more going out than coming in; she became dependent on using credit.
Mrs M was up to date with payments however she was struggling to repay her debts due to the interest and having to reuse the credit available on a day to day basis; resulting in the available spend reducing; making being able to live and survive harder.
She entered an IVA with our assistance, including all of her unsecured creditors. Her monthly payments reduced to what was a manageable and affordable level. Her monthly payments went from £765 per month down to £250 per month. In order to protect her home and equity of £15,000, the client paid into the IVA for a further 6 months, which amounted to an extra £3,000.00.
The individual successfully completed her IVA, paying back £18,000 writing off approximately £7,515
Estimated debt reduced by
Enjoy living your life instead of spending it worrying about your debts
Once your IVA has been approved & your new monthly repayment is maintained, you can start to enjoy peace of mind knowing your debt is being managed.
We do not administer or provide advice solely relating to debt management products, such as Debt Management Plans or Debt Payment Plans under the Debt Arrangement Scheme. We only provide advice after completing or receiving an initial fact find where individual(s) concerned meets the criteria for an IVA, therefore all advice is given in reasonable contemplation of an insolvency appointment.
An Individual Voluntary Arrangement (IVA) is an agreement with your creditors to pay all or part of your debts. You agree to make regular payments to an insolvency practitioner, who will divide this money between your creditors.
An IVA can give you more control of your assets than bankruptcy.
The Money Helper Service has information on organisations that can give you free advice about whether an IVA is right for you.
Get an Individual Voluntary Arrangement (IVA)
Use an insolvency practitioner to get an IVA.
Your insolvency practitioner works out what you can afford to repay and how long the IVA lasts.
The IVA will start if the creditors holding 75% of your debts agree to it. It will apply to all your IVA creditors, including any who disagreed to it.
An IVA will stop your creditors taking action against you for your debts.
Your IVA can be cancelled by the insolvency practitioner if you don’t keep up your repayments. The insolvency practitioner can make you bankrupt.
You may still be able to keep your business running, if you have one.
Your IVA will be added to the individual insolvency register. It’s removed 3 months after the IVA ends.
Bankruptcy is a formal solution where you legally declare your inability to repay your debts. Many people consider bankruptcy to be their "last resort" when looking for a debt solution, but sometimes it can allow you to make a fresh start and be debt free in around 12 months. You may be expected to make repayments into your bankruptcy for up to 3 years.
Bankruptcy can come with some consequences that you might want to think about carefully before choosing this as your most preferred option and there may be alternative debt solutions available to you that are more suited to your situation. You can declare yourself bankrupt or if you owe over £5,000.00 your creditors may petition for your bankruptcy.>
A Debt Relief Order (Also known as a DRO) is a formal Insolvency solution you can apply for if you are living in England & Wales and struggling with debts up to £30,000, providing you haven’t entered into a DRO in the last 3 years. Your assets are worth less than £2,000 and you have a monthly disposable income of less than £75.00.
You can do a DRO in Northern Ireland, but the criteria is slightly different. In order to apply for a DRO you must have debts up to £20,000. Your assets are worth less than £1,000 and you have a monthly disposable income of less than £50.00.
A DRO is sometimes referred to as a form of mini bankruptcy. It is also a much shorter and cheaper to do than Bankruptcy, it normally costs £90 and after 12 months all debts that were included in the DRO will be written off.
A Debt Management Plan (DMP) is a flexible and informal debt solution that is set up between you and your creditors. A DMP may be suitable if you are struggling to manage your debts (above £1,200) and can afford to make a monthly repayment.
A Debt Management Plan allows for one new and affordable repayment that will be shared with your creditors. It is one of the most flexible solutions, which can allow for changes in your situation to be catered for. In a DMP, you repay 100% of the debt back, repaying less than the contractual payments may result in you paying more back and it taking longer to repay.