Mr D's Story
"I owed nearly £40,000 on loans and credit cards and didn’t know what to do or who to turn to. I had bills I couldn’t pay and was worried about what was going to happen next. I got in contact with Revival who talked me and through all the options available to me, we worked out that an IVA was the best course of action for me to take. I feel like my life is now back on track and I can finally see an end to my problems."
Mr D worked full time but also had a part time job to supplement his income. He had a personal loan, credit cards and the usual household bills to pay at the end of each month, which was no problem until he suddenly lost his second job with very little notice and could no longer afford the £600+ per month needed to keep up with his payments. Before long charges were being raised for missed payments and, with increasing interest, the amount he owed was now rising rapidly, “I simply could not afford to pay them all at once” said Mr D.
Mr D searched for another job but could not find one. He could not borrow any more money from the bank because of his continued missed payments and the amount he owed was more than he could borrow on an unsecured loan; he didn’t own his house so had no equity to release. He needed to pay £600 per month to service his debts but now could simply not afford it. We worked out with Mr D that could afford to pay £460 each month, £140 less.
For Mr D it came down to two options a debt management plan (DMP) paying £460 per month or an IVA paying the amount. Under the DMP he would have to pay £460 per month until the debts were cleared – this would have taken 87 payments of £460, totalling £40,020 (this is if the interest and charges are frozen). Mr D opted for an IVA, this means he would make 60 payments of whatever he could afford – 60payments of £460 = £27,600 saving Mr D a total of £12,400 over 2.25 years.
After taking a close look at Mr D’s situation and discussing all the options with him, Revival established that an IVA would be the best option, not just for him but for his creditors, and were able to secure their agreement to a 5 year IVA. Under the IVA, Mr D now makes one affordable monthly payment in the knowledge that his creditors will no longer be pursuing him for payment and they have agreed to accept a write-off of any unpaid balance remaining at the end of 5 years.
Mr A's Story
"Revival allowed me to reverse the undeniable life-long hindrance that bankruptcy can bring. The industry competence and expertise that Revival demonstrated throughout the instigation of my IVA left me in no doubt that I had made the right choice. Finding myself back in control of my finances and the cessation of harassment from creditors and their representatives is an extremely welcomed relief."
Following his redundancy in 2006, Mr A declared himself bankrupt as he could no longer keep up his credit card and loan payments with no income coming in. When he was back at work and earning again he approached the Insolvency Service, who were dealing with his bankruptcy, to see if he could do one of their Fast-Track IVAs but was told his case was not suitable. He then approached Revival who were able to get creditors’ approval for a 5 year IVA based on affordable monthly payments. The IVA will offer a much better return to creditors than if Mr A had stayed bankrupt and it has enabled him to get the bankruptcy annulled by the Court. It is not too late to put forward an IVA even if you are already bankrupt, provided you can offer a reasonable return to your creditors."