Employed: Hydraulic Engineer
Amount of debt prior to IVA: £12,000
Monthly payment into IVA: £158
Number of Creditors: 5
Original debt solution: Debt Management Plan
Amount of debt reduction if IVA completes estimated at 48%
Debts: Loans, credit cards
Service offered: IVA
JP started to get into debt 6 years earlier and was using credit for day to day living costs and to supplement income. Eventually these debts spiralled out of control.
Unable to make full contractual payments to creditors and therefore started a debt management plan.
Having been on debt management for 3 years and having recently re-assessed the financial position it showed that creditors have received little or no benefit and the level of debt did not seem to be reducing. Additionally, not all creditors had agreed to the plan and interest and charges continued to accrue.
At this stage JP investigated the option of an IVA with X Debt which was subsequently approved.
JP is now more confident in the fact that debts will reduce as long as payments are kept up into the IVA. At the end of the period, any outstanding balances will be legally written off so there will be no further creditor pressure giving JP great peace of mind.
If you are suffering debt problems of your own, pick up the phone now to speak to an expert on 0800 043 2424 or 0161 787
3400. Alternatively you can get an indication of whether an IVA may be
suitable for your needs by completing our IVA Calculator