Friday 3rd of July 2009
Individual voluntary arrangements (IVAs) give people in debt the chance to pay back what they owe without worrying about the stigma that is attached to bankruptcy, it has been suggested.
More Britons should seek IVA advice because this method of repaying debt is a "really good idea", Peter Sargent, president of R3 - the trade association for insolvency practitioners - said.
The debtor is allowed to stay in their home and may be relieved to know that an IVA is a private arrangement, as opposed to bankruptcy, which may be advertised in the person’s local newspaper.
"For the right person, in the right circumstance, they are a good idea. Bankruptcy still has a stigma attached to it and it is one way of avoiding it," Mr Sargent advised.
IVA advice was recently offered by the Insolvency Service, which noted that borrowers would only need to make one payment every quarter or month and an insolvency practitioner will be responsible for administering and distributing payments.
