Sunday 26th of July 2009
Individual voluntary arrangement (IVA) help may prevent other UK residents following the trend seen in Scotland.
Figures released by Accountant in Bankruptcy (AIB) showed that there were 6,294 personal insolvencies in Scotland during the first quarter of the 2009-10 financial year. This marks an 11 per cent increase on the previous quarter.
The statistics also revealed that there were 3,730 awards of bankruptcy, an increase of 31 per cent when compared to the same period the previous year.
People in England and Wales in serious debt may find that IVAs are an alternative to going bankrupt and creditors may be more willing to agree to an IVA with their debtors, because they are likely to get most of their money back through this way.
AIB’s report noted: "620 [bankruptcy] awards resulted from petitions to the courts by creditors, a 13 per cent decrease on the previous quarter and a decrease of 15 per cent on the same quarter last year."
The majority were made by debtors applying to the AIB.
By Ashley Littley
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