Sue explained that they had around £60,000 of unsecured debt between them including credit cards and unsecured loans. Sue and Terry owned their own property which had a value of approximately £250,000 with a mortgage of around £190,000 – so £60,000 worth of equity.
Sue went on to tell me that both her and Terry had full time jobs (and had done for some years) and were paying the DMP company £600 per week. “Has anyone ever spoken to you about an IVA (http://www.griffinandking.co.uk/
Obviously, bankruptcy is out of the question because of the equity in the property. I’m surprised there hasn’t been any charging order application from the creditors.
I explained to Sue how an IVA would work for her and Terry. Not only would it provide court protection from an action by any of their creditors (which could happen at any time) but it would also provide a timetable and mechanism for Sue and Terry to be debt free.
We are now proceeding with interlocking IVA’s for Sue and Terry where interest payments will be frozen and they will pay around 45% of what is outstanding to her creditors over the period of the IVA.
Now that’s a much better solution.
Tim Corfield (http://www.griffinandking.co.uk/)
Griffin and King