IVA Example Cases

We've helped all sorts of people...

In 2011, from January to September, 35,785 people entered into an IVA to solve their debts.
3,147 of those are with Harrington Brooks. (Source: Official Insolvency Service figures for Jan to Oct 2011)

Should you join them? - Apply for a IVA now to find out.

Examples given are real cases

Debts of £108,000 cleared with full and final settlement

Our client had an IVA approved on the basis of 60 monthly repayments of £513.

He had found himself with unsecured debt in excess of £108,000. A period of sporadic income during the recession compounded his problem and he soon found he was unable to meet the repayments on his debts as they fell due.

Only nine months into his arrangement, a family member offered £18,000 as a gift to our client with a view to helping settle his debts early.

Our IVA debt department managed to obtain the creditors' agreement to this lump sum being accepted as a full and final settlement. Our client is now in the process of being formally concluded and over 85% of his debt has been written off.

Over £100,000 of debts written off with full and final settlement

Following drastic changes to our client's personal and financial circumstances and after having his home repossessed, they had £142,000 of debt and could not see the light at the end of the tunnel.

In early 2008 through Harrington Brooks our client obtained an agreement with his creditors to pay an affordable amount of £575 per month for 5 years to settle his debts. In December 2011 a family member offered £10,000 to settle the IVA early. We approached his creditors with the offer which was duly accepted.

Our client is now successfully completed, and looking forward to an early release from his IVA and can manage his finances with a clean slate and peace of mind.

Debt Management to IVA, then full and final settlement

At 63 years of age our client was subject to a debt management plan with his creditors with the balance of his debt was reducing steadily but very slowly.

In 2010, still owing £40,000 he was referred to our IVA department who managed to obtain creditor agreement for an IVA on the basis of 60 monthly payments of £324 including a requirement to attempt a release of equity towards the end of the arrangement.

Following his retirement, our client offered £10,000 to creditors as an early settlement of his IVA, representing a share of the lump sum received from his pension. His IVA Supervisor obtained creditors consent to the offer and by doing so have agreed to write off over 76% of his debt (as compared to just 48% in the original agreement). Our client is now looking forward to his early release from his IVA enjoying his retirement debt free and with peace of mind.

Joint IVA - Retired Homeowners

The clients are both in their 60’s and own their own home. Their only income is from pensions and disability living allowance.

They had accrued £20,000 debt over the past 10 years supplementing their income and purchasing items for their home. They tried a debt management plan but felt that, at their age, they needed to think about finding a way to clear their debt, in full, in a shorter period of time.

The clients are homeowners with some equity in their property but, at their age, and on their low income, releasing equity from the property was impossible. Once the IVA had been accepted at £100 per month for five years, they were delighted and felt they could move forward with their lives knowing that their home was protected. They wrote off £13,000 of their debt.

Single Mother - Self Employed owing £34,000

Our client is a 34 year old single mother of two running her own cleaning business, who rents her own home following the breakdown of her marriage.  Her income is made up of self employed income and benefits

She approached us with £40,000 debt made up of credit card and catalogue debts.  She was on a debt management plan and had considered bankruptcy but wanted to pay back as much as she could afford whilst knowing that in five years time she would be free of debt.

The debt management plan had worked for her for two years but the creditors had started to add interest and charges and the client felt it would take her the rest of her working life to repay this debt in full.  After receiving a visit from a bailiff for council tax arrears, she knew more positive action was required.

Her offer of £285 per month was accepted by her creditors and means that she pay back just over £17,000, about 40% of the debt.

The client now knows that she can concentrate on her business and raising her children safe in the knowledge she is protected from any legal action in respect of her debt.

Single Professional with Debts of £58,000

Our client is a 58 year old accountant working in the City. She rents her home in London and was finding it difficult to maintain her high rent and monthly repayments to her creditors.

She has accrued £38,000 debt over the years supporting her three children and supplementing her income. The client is retiring in 7 years and knew that she would not be able to pay the debt off before she retired and felt that an IVA was the perfect solution to her problem and meant she could repay as much as she could to her creditors, whilst still being able to cover her living expenses.

An offer of £230 was made to creditors, which was accepted and the client will repay £13,800, which is just 23% of the original debt. The client feels that now she can look forward to her retirement knowing she can spend time with her family and be debt free.

Couple - Benefits and Self-Employed Based IVA

Our clients (Mr and Mrs C) have two teenage sons, one of whom is disabled, Mrs C is a full time carer for him. Mr C is self employed. They rent their home in Manchester following the repossession of their mortgaged property.

Upon contacting Harrington Brooks, their debt level was £92,000 which included credit cards, loans but the bulk of it was shortfall from their repossession.

They have successfully entered into an IVA paying £200 per month for 47 months to their creditors, which then increases when their car hire purchase payments have finished for the remaining 13 months. In total they will pack back about £15,000.

Our clients are happy with their new arrangement.  They had previously been on debt management but could not realistically see an end to their financial problems. Due to Mr C being self employed, it was in the family's best interests that bankruptcy was avoided.

Retired Couple - Paying only £100 per month

Our clients are both in their seventies, living solely on benefits and pensions.

They rent their property and have approximately £24,000 of debt mainly from catalogues, store cards and credit cards.

They will pay £100 per months into their IVA, at a total cost of £6,000 over 60 month.

Our clients are were happy with their IVA and feel better knowing they would be debt free in five years.  They had considered bankruptcy but did not want to suffer what they felt was a stigma attached to bankruptcy and felt it very important to pay as much as they could to their creditors.

Joint IVA For Employed Homeowners

The our clients (Mr and Mrs C) aged 24 and 38 own their property and both work full time as a Manager and Retail Assistant.

They have £47,000 of debt mainly due to Mr C’s marriage breakup and helping to support his young child who lives with their mother.

They have no equity in their property and have two vehicles on hire purchase. The payments start at £295 and rise during the IVA to take into account their hire purchase payments ceasing. In total they'll be paying back about £24,000.

Our Clients are delighted to have had their IVA accepted as they had began to lose sleep and were very concerned about the future.  They feel confident knowing that they will be debt free in five years, whilst also managing to retain their property.

Single Homeowner With Debts Over £100,000

The client is a Psychologist in her forties,  with her own home in London.  She has a son at University. The debt level was £108,000 which included credit cards, loans, tax credit over payment and legal fees for her divorce.

She offered £330 per month for 60 months. The creditors accepted the IVA, subject to a £43 increase, so the monthly contributions are £373. So she'll pay back about £22,000. In the 4th year of her IVA,  a remortgage to release some equity held within the property will be sought. if this is not possible or affordable, the IVA is likely to be extended by 12 months.

The client was happy to accept the increase and was delighted with the outcome. She gets to keep her home and avoid repaying about £70,000 upon the IVA's successful conclusion.

Single Mother - Income Benefits Only

The client is a single mother of four children ages 2-13 living in rented accommodation, living solely on benefits.  She receives child benefit, tax credits, housing benefit, council tax benefit and income support. The debt level was £15,000 which included credit cards, overdrafts and catalogues.

The client offered £112 per month for 60 months. The creditor passed the IVA subject to some standard modifications, which did not effect our client directly.

The client was happy with the result and felt better knowing she would be debt free in five years.

Joint IVAs For Retiring Homeowners

The clients, aged 54 and 60 had to relocate due to their employment and had to rent a property whilst letting their own property to a third party. They have an 11 year old child and both work full time. They both have vehicles on hire purchase.

Their combined debt level was £92,000 and they were able to offer a monthly contribution of £1,212 due to their level of income. The contributions increase when the vehicle hire purchase has been repaid. They had been on debt management but saw no end to their problems by continuing with this.

As they are nearing retirement, they feel confident knowing that they will be debt free by that time, whilst also managing to retain their property.