Teacher enters into IVA to curb 'spiralling debts'
Teacher enters into IVA to curb 'spiralling debts'
Thursday 20th August 2009
Gerald Moylan and his wife saw their financial situation rapidly deteriorate after Mrs Moylan fell seriously ill, according to the Guardian.
Medical bills and a reliance on a single income meant that the couple were soon £56,000 in debt.
Mr Moylan said: "It's amazing how quickly it happened, and a shock given that we hardly live an ostentatious lifestyle, with a sparsely furnished house and two 12-year-old cars.
"Our situation became untenable as we were borrowing to repay the debt we'd accrued."
The pair attempted to remortgage their house to cover the rising bills, but were unsuccessful as a result of diminished house values and their credit histories.
Mr Moylan commented: "Lenders wouldn't look at us as our house had fallen in value and because of the amount of borrowing we'd already done."
Having been unsuccessful in their bid to remortgage, the couple decided to enter into a joint IVA, with Mr Moylan confessing that he preferred not to file for bankruptcy.
He said: "I didn't want to go down the bankruptcy route, since it would mean we would lose our home."
The couple will have signed off their debt in five years' time.
People who are struggling to cope with mounting debts and considering entering into an IVA could find speaking to a debt consolidations specialist of help.
A record 33,073 people were declared insolvent in the second quarter of this year, according to the Insolvency Service.
News article brought to you by Debt1 – The debt consolidation company
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