Monday 22nd of June 2009
People in debt are generally unaware of the options available to them, such as individual voluntary arrangements (IVAs).
This is the suggestion of Chris Tapp, director of Credit Action, who said that his organisation believes many do not know where to find information of this nature.
"We think people’s knowledge of what to do, where to go if they do have a debt issue [and] what their rights are … is extremely low," he remarked.
However, an IVA - which gives people a greater say in how their assets are dealt with when paying off creditors - can often be the best route for people with debt problems.
James Martin of accountancy firm Begbies Traynor recently suggested to the Birmingham Post that these can be the "most appropriate solution", while Mr Tapp stated that they are a real alternative to dealing with insolvency.
Advantages of IVAs include avoiding a number of the restrictions that apply to bankruptcy, as well as some of the extra fees involved.
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