Insolvency examples of people in Debt living in Devon
Here are some real life examples of our clients experiences. Like so many, these people found themselves in debt, loosing sleep over their money worries, living off credit cards and taking out more loans to avoid the inevitable.
Mrs A contacted us with debts in excess of £65,000. Following our advice it was decided that Mrs A would propose a Voluntary Arrangement to her creditors in which she would repay 25% of the liability, thereby writing off 75% of the liability.
This was agreed by creditors and the IVA was funded mainly by a third party offer from a family member. Whilst Mrs A had very few assets it was possible for the third party offer to ensure she did not have to face the consequences of bankruptcy.
Mrs M contacted us with debts in excess of £47,000. Mrs M had received numerous threats of bankruptcy and was receiving telephone calls daily from people to whom she owed money.
This was very stressful for Mrs M. Being disabled didn't make things any easier to repay the debt, other than approximately £40,000 worth of equity in a jointly owned property. Following advice received from us, Mrs M decided to propose a Voluntary Arrangement with her creditors in which she would utilise a percentage of the equity in her property to repay creditors a total of 50%. It was agreed that Mrs M could retain £10,000 from the equity in her property with which to use as a deposit and rental payments for somewhere to live. This was obviously extremely important to Mrs M as due to her disability she was unable to work.
Mrs L contacted us with regard to both personal and trade debts that she had incurred whilst trading as a Residential Home. The debts had amounted to over £65,000 and Mrs L could see no way in which these could be repaid currently as the creditors were requesting payments from her that were too high.
Following a review of Mrs L’s business, advice was given that Mrs L ought to propose a Voluntary Arrangement with her creditors over a period of 5 years and make monthly contributions from the business. Once this debt could be taken to one side through a Voluntary Arrangement thereby stopping any creditor taking recovery action, she has been able to trade profitably and make substantial contributions with which to repay creditors 40% of the debt. In this case 60% of the total liability was written off.
Mr K contacted us with creditors in excess of £170,000. Mr K had incurred these debts over a period of 6 years by living beyond his means. The majority of debt relates to credit cards. The credit card companies were contacting Mr K daily for a repayment and this was causing a great deal of stress. It was therefore decided that Mr K would propose a Voluntary Arrangement with his creditors and following the sale of his property, £45,000 was released with which to repay creditors a dividend of approximately 35%. Mr K wrote off 65% of his liabilities.
