Monday 10th of May 2010
Individual voluntary arrangements (IVAs) were taken up by thousands of people in the first three months of the year.
That’s according to the latest figures from the Insolvency Service, which found the number of IVAs embarked upon during this period of time went up by 20.1 per cent compared to 2009.
The total number of people going down the IVA route in early 2010 was found to be 11,782.
IVAs may be increasingly in demand as they give you the chance to clear your unsecured debts on credit cards and personal loans over a period of five years.
What’s more, they don’t require details of your money troubles to be published in the local newspaper, obstruct your path into certain careers or lead to more-than-certain repossession of your family home - as can be the case with bankruptcy.
Commenting on the statistics, insolvency trade body R3’s president Steven Law, says: "[The] increase in personal insolvency is as expected as the debt hangover filters through to official insolvency statistics and unemployment increases."
Asking IVA questions, however, could help you get rid of this ‘hangover’ and ensure you have full control over your finances.
By Rachel Powell
- 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
- Bank of England measures 'may stimulate lending'
