Individual Voluntary Arrangements Case Study 3
IVA debt reduction
Individual Voluntary Arrangements Case Study 3
Jamie the graduate
Jamie is paying one monthly affordable payment for 5 years.
Jamie is a single man aged 27. After graduating from university he obtained his first job at a good starting salary working for a computer software company. Jamie moved to a flat near his job and spent money decorating and furnishing the flat to a respectable standard.
He had just left university he did not have any savings and he therefore borrowed money and used credit cards to pay for the decoration and furnishings. Unfortunately Jamie's employer unexpectedly went into liquidation and Jamie suddenly found himself without a job and without any income. Jamie was out of work for 6 months and when he eventually obtained a new job it was at a lower salary than his previous employment.
During the time Jamie was out of work he was not able to pay the interest on some of his loans and interest and bank charges were added. When Jamie returned to work he found that he was not able to afford to pay his debts as well as pay his normal living expenses particularly as he was now working for less pay than in his original job.
With our help Jamie has made a debt reduction agreement thanks to an individual voluntary arrangement with his creditors. He is paying one monthly affordable payment for 5 years. He will repay approximately 60% of his debts and his creditors have agreed to wipe off the remainder. Jamie is now able to concentrate on his career free from the worry of debt.