|
This is a case example of how a sole trader was able to become debt free 2 years earlier than planned through an individual voluntary agreement (IVA). Information supplied by East Anglian Debt Management, providers of ethical debt solutions.
The debt problem
In 1991, Mr X had his own limited company operating as a self-employed aerial contractor. Unfortunately Mr X’s company failed within a few years, after a very costly and acrimonious divorce. He then suffered a complete psychological breakdown and had no income whatsoever until he returned to work in 2001. During this time Mr X had to rely on credit cards to survive. By now Mr X had built up debts of 28,000.
Was bankruptcy the answer?
Although Mr X originally thought that bankruptcy would be the answer, he was advised that as a bankrupt, he would not then be able to claim legal aid. Legal aid was vital for him to petition for a contact order to enable him to see his son
An IVA helped him to become debt free
Mr X sought advice from EADM in 2002. His circumstances were reviewed and he was advised to enter into an IVA. He needed £620 per month to cover his living expenses out of drawings from his business of £900. The surplus income of £290 was offered to creditors as a monthly payment over the 5-year term of the IVA. He therefore paid back almost 38p in every pound he owed, writing off more than £17,000 of his unsecured debts. All interest charges and penalties were frozen so the debts stopped increasing.
In 2005, Mr X received a lump sum from his business and with this, offered his creditors a final one off payment to end the IVA early. This was accepted and therefore Mr X finished his IVA and was debt free some two years earlier than originally planned.
Further case examples
 Debt free with an IVA
Call us for debt advice
Call East Anglian Debt Management now on 0800 316 1022 to discuss your situation in the strictest confidence, or send us a confidential enquiry.
|
Visit our website
Your can find useful guidance on our website on the following aspects of managing debt:
 Debt consolidation
Personal debt management
 Debt reduction solutions
Individual voluntary arrangement
 Personal bankruptcy
About us
Find out more about our experience and approach:
Ethical debt management
Confidential enquiry form
Use this enquiry form for help with your personal debt management problems or if you are a business trading as a 'sole trader'.
Send us a confidential enquiry
|
