Friday 14th of August 2009
Individual voluntary arrangement (IVA) advice could be required after the latest unemployment figures have been released.
The latest findings from the Office for National Statistics show that the employment rate in the UK has fallen to 72.7 per cent in the three months to June. The number of unemployed individuals has, in contrast, risen.
Such a drop in household income could mean many families may be pushed into the red, or could struggle to keep up with their financial commitments.
In such circumstances, IVA help may allow individuals to merge their financial commitments into one monthly manageable repayment, which could take the pressure off recession-hit households.
With job security worries rising, the Insolvency Service has revealed that over the past 12 months, over 27 per cent more people entered into an IVA during the second quarter of this year, when compared to the same period of 2008.
The Insolvency Service said: "In the second quarter of 2009, 86 per cent of bankruptcies were made on the petition of the debtor, similar to the previous quarter and slightly higher than throughout 2007 and 2008 as a whole."
By Rachel Powell
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