Case Studies
Miss D – unsecured debts totalling £28,000
Introducer A was advising his client of many years, Miss D of Newcastle, who had accumulated unsecured debts totalling £28,000 after the breakdown of her marriage. She had recently started a new job and was struggling to make ends meet. Introducer A assessed Miss D's income and expenditure before contacting TCF Debt Solutions and giving permission for us to contact her directly. One of our fully-trained advisors called her and concluded that that she could afford to make monthly payments of £275.
Proposals for an Individual Voluntary Arrangement were put to creditors based on monthly payments of £275 for a period of five years in settlement of her debts, whilst Introducer A was kept fully up-to-date with copy documentation and regular activity reports sent via email.
Miss D’s creditors accepted these proposals which generated a dividend of 43 pence in the pound. Miss D will pay £16,500 over five years in settlement of her debts of £28,000. At the end of the arrangement Miss D will be completely debt free.
Introducer A received a referral fee in recognition for the works he undertook in identifying the need for a debt solution, which was paid to him within days of the IVA proposal being accepted.
Note: Debtor's credit record will be affected for upto 6 years
Mr S – debts totaling £46,326
Mr S had debts totalling £46,326. He had recently got married and had bought a house for £112,000 with a 95% mortgage. Although he was looking forward to married life in a new house Mr S was struggling to pay the debts he had built up during the preceeding ten years. His salary was not covering his liabilities, he was only meeting the minimum monthly payments and withdrawing cash to make ends meet. Clearly this could not continue and he sought the advice of his local Financial Advisor, Introducer M, who recognized immediately that TCF Debt Solutions could help. Introducer M assessed Mr S's income and expenditure before contacting TCF Debt Solutions and gave permission for us to contact him directly.
We presented his creditors with a proposal for an Individual Voluntary Arrangement based on monthly income payments of £350 for five years. This provided a dividend of 34 pence in the pound. The Arrangement was approved by his creditors.
Mr S will therefore pay £21,000 over the next five years in full settlement of his debts of £46,326. His creditors have requested a revaluation of his house in the fifth year of the arrangement to consider whether a remortgage is feasible. If a lump sum is paid in from remortgage the regular payments from income will cease. At the end of the five years Mr S will be debt free and he will be able to keep his house.
Introducer M received a referral fee in recognition for the works undertaken.
Note: Debtor's credit record will be affected for upto 6 years