Monday 10th of August 2009
A man was able to remain in work by opting for IVA help, rather than declaring bankruptcy.
Teacher Gerald Moylan tells the Guardian that he would have had to leave his job if he had been declared bankrupt.
However, by seeking IVA help, he was able to remain in work while tackling a debt problem that arose when his wife was taken ill.
While he was still being offered new forms of credit, Mr Moylan reveals that he was unable to access debt solutions other than the IVA he selected.
"Lenders wouldn’t look at us as our house had fallen in value and because of the amount of borrowing we’d already done," he explains.
Now he has embarked on a process that should see he and his wife become debt-free within around five years.
Insolvency Service statistics show IVAs have continued to gain popularity in the past 12 months, with 27.4 per cent more people entering into a plan in the second quarter of 2009 than in the same period of the previous year.
By Kim Parsons
- 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 answers could help struggling borrowers
