Tuesday 9th of February 2010
Individual voluntary arrangements (IVA) are being undertaken by an increasing number of Britons, the Insolvency Service has reported, but one financial expert claims these figures are the tip of the iceberg.
President of R3 Peter Sargent says while more people may be choosing IVAs in order to repay what they owe, many more, like you, will be struggling with debt but currently not seeking answers on IVAs or other ways to keep up with repayments.
Research by R3 reveals that around one million individuals have not asked for help, while over half a million have informally asked their lenders for help.
In order to make an agreement between yourself and your creditors formal, you may want to consider an IVA.
Once an IVA is in place all contact by lenders must be done through a specialist negotiator and as long as you keep up with your repayments, creditors cannot take further legal action.
"We know from previous recessions that early recovery can be a dangerous time - insolvencies continue to rise even after a recession ends," Mr Sargent explains.
By Ashley Littley
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVAs could offer new mortgage customers breathing space
