Friday 5th of February 2010
The Insolvency Service has revealed that in the fourth quarter of 2009 there were 13,219 individual voluntary arrangements (IVAs) in England and Wales.
Such a figure represents a 26.3 per cent increase compared to the same quarter of the previous year, which may highlight how more people in debt are asking questions on IVAs to see if this type of repayment plan is suitable for their circumstances.
The number of bankruptcies was down 5.5 per cent to stand at 17,007, which may reflect how individuals want to avoid the negative consequences that come with a bankruptcy.
One way to avoid the potential loss of a home and the inability to work in certain jobs, such as accountancy, could be to repay debts of more than £15,000 through an IVA instead.
IVAs can help reduce the debt that individuals owe and also prevent lenders from taking further legal action as long as the agreed repayments are kept up.
For the whole of 2009 there were 47,641 personal IVAs, an increase of 21.8 per cent from 2008.
By Neil Burton
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- IVA answers to help those facing personal insolvency?
