IVA case studies
IVA case studies offer a great opportunity to analyse a typical example of an IVA case, where someone has used an IVA to become debt free.
This IVA case study concerns Mr & Mrs G. from the South East of England.
Mr & Mrs G. have 2 children, aged 11 and 7, and they live in a 3 bedroom semi-detached house which they moved into 2 years ago.
They bought the house for £165,000 and they have a 90% Capital and Repayment mortgage on the property, with £148,500 outstanding.
Their financial problems began when Mr G's employers imposed an overtime ban. This reduced his income dramatically and, even though Mrs G. increased her hours at work, there was still a shortfall in their budget.
Mr G. consolidated existing debt into a loan and used his credit cards to fund the shortfall in their budget, hoping that his income would be restored in the short term. As a result, the G. family's unsecured debts rose very quickly.
By the time Mr G. approached IVAorg for help they had a total debt level of £36,000, costing £845 per month.
The IVA application
It was plain to see why Mr & Mrs G. had been struggling.
As part of their consultation it was established that, once the families normal living costs had been deducted from the family income, they were only able to afford £230 per month towards their debt.
We explained and discussed all their available options and, after taking time to consider their position, they decided that an IVA was the right option.
After 4 weeks to set-up the IVA, Mr & Mrs G. successfully entered into their IVA with an IVA payment of £230 per month.
The IVA will protect the equity in the family home and, even though they may be required to remortgage towards the end of the IVA, Mr & Mrs G. feel like they have their lives back under control.
Getting Professional Advice
Can you relate to this IVA case study?
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