Linda owed her creditors £30,000, the repayment on this debt was £500 per month. Linda could only afford £100 per month so she paid the minimal amount and the debt kept growing through interest.
Linda entered an IVA paying £100 per month for 5 years, she paid a total of £6,000. Creditors accepted this in lieu of the £30,000 they were owed.
Creditors were paid 13 pence in the pound after fees. The unpaid debt (over £25,000) was written off. Linda was then legally free of her debt.