Most people become over indebted because of a big life change: Losing a job, getting married; having a child or, in this case divorce. Thanks to a ClearDebt IVA, Mr C now only has to repay 60% of what he owed.
Mr C’s acrimonious divorce left him with big debts, even though the matrimonial home had been sold. He took on more debt to pay the original debt.
He came to us with debts of £211,000 – he could no longer make the minimum payments. Mr C has a well paid job and other assets to help clear his debts.
His former wife will contribute some and he’ll sell a second car for £4,000. At the end of the five year IVA he will raise £30,000 from re-mortgaging his home. His job means he can afford the £1,350 monthly repayments.
But, his creditors will still have written off more than 40% of what he owes. Mr C is on his way to becoming debt free.