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Anthony had unsecured creditors of £71,811.46 which consisted of bank loans, overdrafts and credit cards. Anthony has gone through a number of very tough years as his marriage had fallen apart and very tough divorce proceedings followed. To cap it off, Anthony lost a very well paid job and was living off his redundancy.

Anthony was very adamant he wanted to avoid bankruptcy even though he had no remaining assets apart from the balance of his redundancy pay out of £11,000, and no disposable income to make repayments.

Bev Budsworth our IP suggested offering the £11,000 as a lump sum settlement put forward using the Individual Voluntary Arrangement “IVA” procedure. Normally IVA’s are 5 or 6 year payment plans where the individual pays an affordable monthly sum into the arrangement. Clearly this was not possible and as an alternative Anthony’s IVA proposals suggested that creditors accept the £11,000 in full and final settlement of their debts.

situation before Full & Final IVA

Total Unsecured Debt

Surplus income

Monthly commitment to creditors




approved Full & Final IVA solution

Lump sum from redundancy


Total to be repaid by client


Dividend accepted by creditors (per £)

Bev Budsworth had reservations that creditors would accept the full and final offer especially as Anthony’s wife had ended up with all the equity in their property as part of the divorce proceedings. Creditors did accept Anthony’s proposals and 12 months after proposing his full and final IVA, he is now debt free and earning a reasonable income as a consultant.