Monday 3rd of August 2009
Figures set to be released on Friday (August 7th) are expected to show that in the first three months of the year there were more than 19,000 bankruptcies, it has been reported.
Individual voluntary arrangements (IVAs) are an alternative to bankruptcy and the Times noted that the official figures are set to reveal that almost 11,000 IVAs were taken out by Britons.
The news comes after Peter Sargent, president of R3 - the insolvency practitioners’ trade body - told the publication that it is not unusual for individuals to come to him with £75,000 of debt on unsecured loans and credit cards, a figure many Britons may find themselves owing.
He said that debt is a problem for all members of society, including teachers, solicitors and pub landlords.
Mr Sargent said: "These people have had to realise that their house is no longer a gigantic cash machine that they can simply draw money out of whenever they choose."
If like his clients, Britons are worried about how they can clear significant amounts of debt, they may find IVA advice to be of assistance.
To avoid debt climbing up to sky-high amounts, an IVA can freeze the interest on unsecured debt, which may give cash-concerned people some breathing space.
By Ashley Littley
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