Individual Voluntary Arrangements
Mrs F had debts totalling £46,326. She had recently got married and had bought a house for £112,000 with a 95% mortgage. Although she was looking forward to married life in a new house she was struggling to pay the debts she had built up during the preceding ten years. Her salary was not covering her liabilities and she was paying the minimum monthly payments and withdrawing cash to make ends meet. Clearly this could not continue and she sought our advice.
We assessed her income and expenditure and concluded that she could afford to pay £250 per month towards her debts. We presented her creditors with a proposal for an Individual Voluntary Arrangement based on monthly income payments of £250 for five years giving an estimated dividend of 21 pence in the pound and this was approved by her creditors.
Mrs F will therefore pay £15,000 over five years in full settlement of her debts of £46,326. At the end of the five years Mrs F will be debt free and she will be able to keep her house.
Miss O had debts of £224,424 following the failure of a business several years before. The only asset she had was her home which was worth £105,000. Miss O was not working as she had recently had a baby and was being supported by her boyfriend.
With the support of her boyfriend, we assisted in the re-mortgage of her home which realised the sum of £30,300. We presented creditors with an Individual Voluntary Arrangement proposal to accept the £30,300 as a one off payment in full settlement of all liabilities. With no other assets or income, creditors accepted the Individual Voluntary Arrangement and we paid a one off dividend of 10 pence in the pound. Miss O is now debt free and she has been able to keep her house.
Mrs T had been unable to work for several years due to family problems and had incurred credit card and loan liabilities totalling £34,000. She sought our advice and having discusses her affairs with her family, was able to offer her creditors a one off payment of £13,600 from a family member. This offer was presented to her creditors in an Individual Voluntary Arrangement and was accepted by them. After the agreement of creditor claims, Mrs T’s creditors received a dividend of 25 pence in the pound. The Individual Voluntary Arrangement lasted for just eight months and Mrs T is now debt free.
Mr & Mrs B.
Mr & Mrs B are the landlords of a public house whose business has suffered due to substantial increases in rent and falling turnover due to changes in drinking habits. Between them Mr & Mrs B have creditors totalling £52,000. Mr & Mrs B had decided to sell the pub, move into rented accommodation and take up paid employment. However the sale of the pub was not progressing and they had run out of money and could not pay their creditors. Faced with closure of the pub and the loss of their business Mr & Mrs B sought advice. We helped them propose Individual Voluntary Arrangements to give them a breathing space while the pub was sold. Furthermore the Individual Voluntary Arrangements allowed them to retain funds from the sale of the pub to assist them in setting up a new home. The Individual Voluntary Arrangements were approved and Mr & Mrs B were able to continue trading and so allow the sale to complete. When completed the creditors are estimated to receive 45 pence in the pound.
Mr T had loan and credit card debts totalling £66,000 which he had incurred over a six year period. Mr T had re-mortgaged his home and offered his creditors a one off payment in settlement of his debts. This offer was rejected by his creditors and he sought advice from us. We advised him that he should propose an Individual Voluntary Arrangement based on the one off payment and this was put to creditors. The Individual Voluntary Arrangement was accepted and three months later his creditors received a dividend of 24 pence in the pound. After just four months the Individual Voluntary Arrangement has been concluded and Mr T is now debt free.