Jane was in severe financial trouble. In addition the her mortgage, she held 13 credit cards, catalogue and loan agreements amounting to contractual monthly payments of £1,199, but only a surplus income of £202, mainly coming from a second job.

There was some equity in the house, but no way of releasing this as she would not be able to afford the increase in mortgage payments resulting from this. Jane did not want to sell the house as this was all she had left after her husband walked out on her and she divorced him.

With mounting Debt Problems, Jane had to find a solution. Filing for Bankruptcy would have meant losing her home, so she contacted Phillip Allen to arrange an Individual Voluntary Arrangement (IVA).

The creditors approved the IVA, whereby she would pay £202 per month for 60 months, and re-mortgage at the end of five years to release the equity in her property to the value of £20,604.

Jane's debts were only £38,128 but using the IVA meant that she did not have to pay interest on her debts and was able to make an affordable monthly payment for five years until she could re-mortgage and the IVA was successfully completed.

Creditors received total dividends of 65 pence in the pound, rather than the 40 pence at most in Bankruptcy.