Tuesday 21st of September 2010
Individual voluntary arrangement (IVA) answers might offer support for an increasing number of Brits in the near future, as one industry specialist states personal insolvencies are set to grow.
According to Richard Talbot, director of Credit Action, recent economic uncertainty will lead to money troubles that will see a rise in the number of people taking measures to get out of the red.
He explains this is largely because individuals still appear to be "living beyond their means".
If you're deep in debt and are facing insolvency, however, it may be that an IVA is a more favourable option than bankruptcy, depending on your circumstances.
The process serves to eliminate money owed - if it's more than £15,000 - on credit cards and personal loans over a period of around five years, as long as you're in full-time employment and have the means to meet approximately 60 reduced-rate monthly repayments.
An IVA demands lots of hard work, but you could find it's more suited to you as it doesn't require details of your financial strife to be published in the local newspaper or block your career path in certain sectors - unlike bankruptcy.
The method also protects the equity on your family home.
Mr Talbot observes: "We're going to see [the numbers of insolvencies] slowly rise in the next 12 months to two years."
By Mark Waterman
- 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
- IVA help could support poorer families
