Avoiding Bankruptcy - Success Stories

Mr David and Mrs Karen B (Joint Homeowners)

David and Karen have been married for four years. David is a self employed builder who approached us because he had received a Statutory Demand from one of his Trade suppliers for £4,000. The trade creditor was threatening bankruptcy and David could not afford to pay the debt immediately. David also owed £5000 to HM Revenue and Customs for an outstanding Income Tax Bill. Upon completion of a 10 minute financial analysis we worked out that David and Karen owed a total of £56,000 between them. Karen was currently only able to work part time due to the birth of their first child; this additional strain upon the family finances meant they were getting pressure from all their creditors. They were also in arrears with their mortgage, having already re-mortgaged once in an attempt to restructure their debts which had not worked.

We were able to help them obtain an Individual Voluntary Arrangement. The IVA has allowed them to legally consolidate all their debts into one affordable monthly payment, reduced from £1300 per month to £475 for a maximum period of 60 months. The application for bankruptcy against David was also removed and he is now able to concentrate upon his business without the additional debt pressures. The flexibility of an IVA means that they hope to be able to finish their IVA earlier than 60 months by re-mortgaging the family home, if equity becomes available in the future. Whether they pay the IVA for 60 months or re-mortgage to complete the IVA early, David and Karen are now able to fully enjoy their family life once more.

If you have any questions about bankruptcy or its alternatives then fill in the below form. Just enter your query and one of our groups impartial debt advisors will get back to you.