She took out a consolidation loan of £18,000 but this still left her with around £25,000 other debts with minimum payments in excess of £500 per month.

Klaudia struggled on for a few years but ended up with even more debt as interest had been added to her loan and she had to use credit cards to fund everyday living.

Klaudia had a property she was keen to protect and was desperate to avoid bankruptcy. She was referred to The Debt Advisor Ltd and it appeared an IVA offering her surplus of £368 per month for 5 years would allow her to repay around 34% of her unsecured debt.

As the property was worth considerably less than the mortgage, it was unlikely that in year 5 of Klaudia’s IVA, she would have any equity in the property and would be able to conclude her IVA after 60 months.

Monthly contributions:
48 x £368
12 x £617
(Creditors requested an additional 12 payments at the meeting of creditors)