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This is a case example of how a young woman was able to find a route to becoming debt free through an individual voluntary agreement (IVA). Information supplied by East Anglian Debt Management, providers of ethical debt solutions.
The debt problem
Miss S is a twenty-six year old financial adviser employed by a high street bank.
She successfully bought a car at the age of eighteen by taking out a personal loan. Because she found it so easy to make the monthly repayments from her salary, she then took advantage of more and more credit card offers. She began spending more and more money, using her cards.
Eventually her monthly repayments became almost as much as her monthly salary. She began to use one card facility to make the payment on other balances. As a result, instead of clearing any card balance in full, she was simply shifting the balances between all the cards, using one card to pay off another.
Her family initially supported Miss S, by allowing her to live with them in their home, free of charge. However her parents eventually gave her an ultimatum to start contributing or move out.
Miss S had reached her rock bottom. Finding herself in a desperate situation, she turned to East Anglian Debt Management who reviewed her circumstances and gave best advice. At that time, her unsecured debts totalled approximately £70,000.
An IVA provided the route to becoming debt free
In February 2007, on our advice, in conjunction with one of our panel of Insolvency Practitioners, Miss S decided to propose an Individual Voluntary Arrangement and her creditors accepted the proposal. Prior to this, Miss S had been paying most of her £2,300 monthly take home pay to her creditors, without being able to contribute to his living expenses.
The contribution Miss S is now making, of £500 per month over five years, will repay her creditors just over 32p in every pound which she owed. She can now contribute to living expenses and has been able to continue employment as a financial services adviser. She will happily be completely debt free in five years, the IVA having written off over £45,000 of her unsecured debts.
Further case examples
 IVA was the solution for a sole trader
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Call East Anglian Debt Management now on 0800 316 1022 to discuss your situation in the strictest confidence, or send us a confidential enquiry.
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Individual voluntary arrangement
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