Individual Voluntary Arrangements Case Study 4
IVA debt reduction
Individual Voluntary Arrangements Case Study 4
Brian and Dorothy
Brian and Dorothy now have less to worry about
Brian and Dorothy have experienced more than their fair share of problems in the past few years. Brian has suffered from a debilitating illness which meant he had to cease work 3 years ago. Dorothy continues to work and helps care for Brian who lives at home with her. Brian and Dorothy have 3 children aged 12, 13 and 16.
2 years ago their 16 year old son was involved in a serious road accident and although he has now made a full recovery he was in hospital for 6 months recovering from his injuries and then at home for a further 8 months before being fit enough to return to school. During all this time Brian and Dorothy had to care for their son and as a consequence this meant that Dorothy was not able to work.
Because of Brian's condition the family had to move house to a bungalow and it was necessary to pay for special adaptations to the bungalow so that Brian could manage to live independently as far as possible.
3 years ago Brian and Dorothy owed a modest amount of money to their bank and to one or two credit card companies. Their finances were under control and they had never missed a payment to anyone. The unexpected changes in their finances due to Brian's ill health and their son's accident suddenly resulted in Brian and Dorothy finding themselves facing demands to repay debts which were simply unable to manage. They could not see a way out of their financial mess, unless they could make an individual voluntary arrangement to achieve debt reduction.
Since contacting us we have worked out an agreement with creditors which has meant the Brian and Dorothy are now paying a single monthly affordable payment for 5 years. At the end of the 5 years they have agreed to release a modest sum of money from the equity in their house. Their finances are now in order and although creditors will not get all their money back Brian and Dorothy now have less to worry about.