Debt Management Case Study
Illness leads to reduced income and financial difficulties.
| Debt: £36,500 | Was paying: £703/month |
| Now paying: £200/month | |
| Client's difficulties began when he became ill. After 3 months his wages were reduced to statutory sick pay. The strain of the illness and financial difficulty resulted in the Client X and his partner separating, thus increasing his living costs. The Client continued to live on credit and fell further into debt. Now he has recovered from illness and is returning to work. His lengthy absence from work means an IVA is currently not possible. This is because creditors need to be confident IVAs payments can be made every month for 5 years. He is to continue with current repayments and will consider the possibility of an IVA in the next 6-12 months. |
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