Divorce Leads to Financial Crisis
Mr H had run up a modest amount of debt, less than £20,000 which he could manage until, that is, he split up from his wife and had to provide for the three children.
The matrimonial house was to be sold and his share, £2,000, remitted into the Arrangement along with 60 monthly payments of £292. The easy option may have been to go bankrupt (though at the outset of this arrangement, the period of bankruptcy was three years) but being a man of principal, Mr H wanted to avoid this.
Things didn't go well; the sale of the house did not produce any equity and occasionally the payments were a struggle. The arrangement was extended to allow these shortfalls to be remedied.
Dividends paid to creditors totalled 84 pence in the pound and Mr H was satisfied that he had fulfilled his obligations.
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