Case Studies

What People say to us

• “My debts are spiralling out of control, I just can’t manage them.”
• “I am struggling to make my minimum payments each month.”
• “I am robbing Peter to pay Paul.”
• “It’s got the stage where it’s all making me ill with worry.”
• “My creditors are harassing me every day and threatening legal action.”
• “ My wife and I keep arguing about money, we really need to sort this out”

How we have helped them

Case Study 1

Ms. S. of Ipswich came to us with outstanding debts of £47,000. She had a regular income and was able to make a payment of £350 per month. Ms. S. offered to make 60 monthly payments to her creditors and also agreed to pay 50% of any bonus, overtime and commission payments she received in her salary. Her proposals were accepted by a majority vote and interest and charges were suspended at the date of approval. At the end of her Arrangement, after fees and expenses, Ms. S. had paid 25 pence in the pound and had been released from any further liability.

Case Study 2

Mrs. T. of Ealing had outstanding debts of £105,000. She was in a position whereby she was able to make regular payments of £600 per month. Mrs. T. also owned her home and was very worried about the possibility of bankruptcy and the subsequent loss of her home. Her share of the equity amounted to £12,000. With our assistance Mrs. T. prepared a proposal outlining a five-year repayment plan. She offered to make 60 regular monthly payments of £600. She also offered to have her home professionally revalued in the final year of the Arrangement and to pay in half of her share of the equity by the end of the Arrangement. It was agreed that Mrs. T. would either re-mortgage her home in the final year of her Arrangement to release £6,000 worth of equity, or she would continue to make payments into her IVA for a further twelve months. Her creditors accepted Mrs. T’s proposals and at the end of her IVA she will have paid 31 pence in the pound. An IVA was the ideal solution to Mrs. T’s debt problems as she now makes one affordable monthly repayment and does not have to worry about losing her home because of her debts.

Case Study 3

Mr. M. of Devon had personal, unsecured debts of £33,000. He was employed as a seasonal casual worker and, as such, had no regular, guaranteed income. He had previously been employed full-time but with the onset of the foot and mouth crisis, he no longer had the benefit of a regular salary. Faced with unpromising prospects he wanted to enrol at university and pursue a professional career but did not feel able to initiate this due to his debt. Wishing to assist their son in any way possible, and avoid his potential bankruptcy, his parents felt that a lump sum IVA offered the ideal solution. Mr. M’s parents were able to give their son £15,000. His proposals were that this amount be paid into the arrangement for the benefit of creditors within three months of the arrangement being accepted. Given his circumstances, creditors were, in the event, prepared to accept the offer. After fees and expenses, Mr. M’s creditors received a final payment representing 30 pence in the pound.

Case Study 4

Mr W of Halifax was a management consultant. His company had experienced serious financial difficulties and, having lost various large contracts his company finally went into liquidation. Prior to this he had taken various personal loans in an attempt to keep the company trading.  His debts had also increased as he had not been able to draw an income from the company for quite a while. Mr W found he had debts of around £120,000 and one of his creditors was in the process of petitioning for his bankruptcy. Mr W wanted to avoid bankruptcy as he wanted to protect his home and start up in business again. With our assistance Mr W obtained an Interim Order to put a hold on the bankruptcy proceedings. Mr W’s business plan showed that he would be able to make a minimum annual contribution of £12,000 ( to be paid in variable monthly instalments as his income from the business allowed). Mr W also agreed to have his house valued in the final year of the arrangement and pay in his share of the equity, estimated to be £15,000.  Mr W’s creditors accepted his offer and will receive approximately 43 pence in the pound after fees and expenses.  Mr W has avoided bankruptcy and protected his home, leaving him free to concentrate on the success of his new business.