Wednesday 17th of June 2009
Entering into an individual voluntary arrangement (IVA) is the best solution for many people who are struggling with debts, an expert has argued.
James Martin, partner at the Birmingham office of Begbies Traynor, told the Birmingham Post that IVA advice could help people improve their financial standing.
Mr Martin is also the Midlands chairman of insolvency practitioner trade body R3, which recently found that around 700,000 people have entered into a debt management plan.
He explained that government figures ignore this option, meaning debt levels are much higher than official estimates.
But Mr Martin argued that in many cases an IVA "would have been the most appropriate solution", which emphasises the importance of seeking help over how to deal with debts.
Earlier this year, KPMG predicted that 150,000 people in the UK would be declared bankrupt or enter into an IVA or debt relief order by the end of 2009.
- 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 working parents tackle debt
