When Christopher Brown first met with Mr and Mrs Lyons at their home in Nottinghamshire they had been in a Debt Management Plan (DMP) for five years; during that time they had paid approximately £22,000 to their creditors, but they still owed more than £31,000 to their creditors.
Based on their current level of payments it would have taken another eight years before their creditors were fully repaid. Mr Lyons’ job had recently changed resulting in reduced take-home pay, which meant that they were no longer able to make the DMP payments. Christopher’s advice was twofold: they could either opt for a lump sum Individual Voluntary Arrangement (IVA), assuming they could raise a lump sum from their family; if this was not possible they could declare themselves bankrupt and gain relief from their debts.
Mr and Mrs Lyons contacted their family and Mr Lyons’ mother agreed to lend them £10,500 to offer to creditors. Christopher assisted Mr and Mrs Lyons in preparing a proposal, which was accepted by creditors at the end of October 2013. Creditor claims were agreed and a dividend of 28 pence in the pound was paid to creditors. The IVA was completed at the beginning of February 2014 – three and a half months after the IVA was agreed – and the balance of creditor claims was written off.
Mr and Mrs Lyons are now debt free and looking forward to a positive future.
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