Friday 20th of November 2009
Residents in Reading may have decided to seek individual voluntary arrangement (IVA) advice after statistics revealed a growing number of potential bankruptcy victims are turning to the alternative debt-repayment plan.
There were 387 cases of personal insolvency in the Berkshire city during the last three months, according to the Reading Post.
If Reading follows the national trend revealed by the Insolvency Service - which shows that IVAs have grown in popularity by 21 per cent compared with last year - then there could be dozens of cash-strapped consumers in the city turning to a financial expert for IVA advice.
John Bangham, director of personal insolvency at KPMG which commented on the statistics, said: "Our analysis of the figures shows that over 500 people a day are choosing formal insolvency procedures such as bankruptcy, debt relief orders or IVAs to solve their financial problems."
IVAs enable individuals in financial distress to, with the help of an IVA adviser, approach their creditors and offer to restructure debts.
This can often mean repayments are set at an affordable rate for a fixed period of time.
By Rachel Powell
- 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
- Information on IVAs could help women prepare for retirement
