The debtor approached BCR during January 2010 with debts amounting to £44,000. He had minimal equity in his house and little by way of assets. Whilst the debtor was entitled to petition for his own bankruptcy, he wanted the opportunity to pay back what he owed. In the circumstances and with the assistance of BCR, an IVA (“Individual Voluntary Arrangement”) was proposed and accepted by his creditors. This enabled him to make affordable monthly contributions for five years resulting in an estimated return to creditors of approximately 40 pence in the pound.
In addition to the monthly contributions, BCR successfully claimed Payment Protection Insurance (“PPI”) payments that were previously miss-sold to the debtor. This increased the total return to creditors to over 50 pence in the pound.
The debtor further proposed in his IVA that if there was sufficient equity in his property during the final year of his IVA that he would seek to remortgage his property and introduce additional funds into the arrangement. This was reviewed by the supervisor and there was insufficient equity, therefore there was no further contribution.
The debtors proposal was based on 60 monthly contributions. Upon receipt of his final contribution a certificate of completion was issued to him and his creditors notifying them that the arrangement had been successfully implemented. Those creditors will have no further recourse against the debtor in respect of the pre-IVA debt. He effectively has had the remainder of those debts written off. The IVA route has resulted in creditors receiving over 50 pence in the pound, whereas in Bankruptcy it is unlikely that they would have received a penny.
I would like to thank you for your help in seeing me get through to the end of my IVA. It has been a struggle at times but now I am in a better position to move on with my life. Many many thanks.
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