Case Study of an IVA as a Solution to Lower Debt Repayments

Name - Mr H.
Age - 58
Marital Status - Widowed
Location - Birmingham
Occupation - Security Guard
Total Unsecured Debt - £44,326
Previous Monthly Repayments - £1151.41

Mr J had never had a problem with credit until, his wife was diagnosed with cancer and subsequently died, shortly afterwards his brother also died. Unable to function in his job as a butcher, due to stress, he took new employment as a security guard in order to avoid being at home alone in the evenings. However his wages were considerably less but he managed to ‘muddle through’ doing extra shifts.

Mr J. eventually realised his overheads were more than anticipated and began to fall behind on minimum payments to creditors. He approached his bank for consolidation loan which was successful, but was not enough to clear all of his debts. In order to keep afloat financially he began to use credit cards, which had previously been cleared with the consolidation loan.

Unable to see any way out but aware of the need to regain control of his financial situation he 
approached ACCUMA whose experienced staff helped and guided him through the options available. An Individual Voluntary Agreement (I.V.A.) was proposed to his 12 creditors and was successfully approved.

Instead of struggling to pay £1151.41 each month, Mr H. now repays 28 monthly repayments of £338, followed by 32 monthly repayments of £458. All interest and charges have been frozen, creditors no longer chase payments and in just 60 months he will be debt free having only repaid £24,120 of the original  £44,326 he owed.