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Mr J had debts of £102,000 which had accumulated after the company he had been employed by closed down. He struggled to find employment that would enable him to pay the mortgage on his property and he was "robbing Peter to pay Paul". Bankruptcy was not an option as that would effectively have meant an end to his career in the financial sector.
He sold his house releasing £20,000 of equity. Whilst half of his equity was due to his wife, she agreed that this should also be put forward to the creditors by way of an Individual Voluntary Arrangement ("IVA").
Mr J, being a popular man in the community, found friends that would also put up a further £20,000 to produce a total of £40,000 to be offered to creditors.
The creditors accepted the proposal and within one year, the IVA was completed with 33p in the £ being paid to creditors which included H M Revenue and Customs.
News courtesy of the BBC