Case Study
Mr & Mrs Clarke owe £22,000; this debt is made up of 9 creditors, various credit cards, personal loans, catalogue debts and a bank overdraft.
To keep up repayments they need £550 which they were managing to do until Mrs Clarke had a baby and was unable to return to work. The financial situation became very tight and they began to fall behind with payments. Mr Clarke earned £1450 a month and their expenditure totalled £1200.
Mr & Mrs Clarke contacted us and we recommended an IVA. Their offer was as follows: £250 to be paid monthly into their IVA Account for 5 years totalling £15,000. So, now all Mr & Mrs Clarke need to do is keep up with their monthly payments to be totally debt free in 5 years.
Creditor
Someone you owe money to.
Unsecured lending
Total loan & credit card debts excluding your mortgage and any hire purchase.
Country
The country you currently live in.
Insolvency Practitioners
Also known as an IP, a person who specialises in formal insolvency cases.
Valuations
The process of determing the current value of an asset.
Equity
The difference between the market value of a property and the claims held against it.
Lender
Someone you owe money to.
Eviction Order
A court order by which a person may be evicted.
Arrears
An unpaid and overdue debt.
Disposable Income
The amount of income left to an individual after taxes have been paid, available for spending and saving.
Statement of Affairs
A financial report showing assets and liabilities at expected liquidation values and shareholders' equity.
Insolvent
Unable to meet debt obligations.
Secured Loan
Money borrowed using goods or property as a guarantee.