Saturday 7th of August 2010
Individual voluntary arrangement (IVA) questions may offer support to a growing number of people, following the publication of new figures.
According to the Insolvency Service, the proportion of individuals in England and Wales going bust in the past three months was up by five per cent compared to the same period in 2009.
The data shows this included 14,982 bankruptcies and 13,466 IVAs.
It also reveals the number of people opting for an IVA increased by 10.2 per cent.
This may be because the method of insolvency has become a more favourable option for those who owe more than £12,000 on unsecured financial products, as it protects the equity on their family home and doesn’t require details of their money troubles to be published in the local paper - which is not the case with bankruptcy.
Commenting on the figures, R3 president Steven Law says: “These numbers are almost certain to rise still further and for many of those affected, it might well be the first time they’ve had to deal with serious financial problems.”
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 information could help reduce high debt levels
