Case Studies

Miss A - £424,424

Miss A had debts of £424,424 following the failure of a business several years before. The only asset she had was her home which was worth £170,000. Miss A was not working as she had recently had a baby and was being supported by her boyfriend.

Miss A contacted Debt Rescue Now and instructed us to source the best recommendation. Debt Rescue Now assisted in the re-mortgage of Miss A's home which realised the sum of £148.000 We presented creditors with an Individual Voluntary Arrangement (IVA) proposal to accept the £148.000 as a one off payment in full and final settlement of all liabilities. With no other assets or income, creditors accepted the IVA in February 2006. We have now paid a one off dividend of 35 pence in the pound and Miss A is now debt free and she has been able to keep her house.

Mrs B - £28,000

Miss B of Newcastle had accumulated debts totalling £28,000 after the breakdown of her marriage. She had recently started a new job and was struggling to make ends meet. One of our fully-trained advisors called her and performed an in-depth fact-find, assessing her income and expenditure and concluded that she could afford to make monthly payments of £275.

Proposals for an Individual Voluntary Arrangement (IVA) were put to creditors based on monthly payments of £275 for a period of five years in settlement of her debts.

Miss B's creditors accepted these proposals which generated a dividend of 57 pence in the pound. Miss B will pay £16,500 over five years in settlement of the debts of £28,000 and will be able to keep her house. At the end of the arrangement Miss B will be completely debt free.

Mrs C - £46,326

Mrs C 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 the advice of Debt Rescue Now to find out how we could help.

Debt Rescue Now assessed her income and expenditure and concluded that she could afford to pay £350 per month towards her debts. We presented her creditors with a proposal for an Individual Voluntary Arrangement based on monthly income payments of £350 for five years. This provided a dividend of 46 pence in the pound and in April 2006 the Arrangement was approved by her creditors.

Mrs C will therefore pay £21,000 over the next five years in full settlement of her debts of £46,326. At the end of the five years Mrs C will be debt free and she will be able to keep her house.