Thursday 18th of February 2010
Individual voluntary arrangements (IVAs) in Swindon reached 277 in the last quarter of 2009 while bankruptcy petitions fell.
Figures released by RSM Tenon and revealed in the Swindon Advertiser show that bankruptcy petitions fell by 32 per cent in the same period, while questions on IVAs rose.
IVAs may be more popular with people with unsecured debts of more than £15,000 because they could help avoid the potentially serious consequences that can come from bankruptcy.
While it does take around five years to repay an IVA and a mark will be left against a borrower’s name, they can help avoid a home being repossessed as long as the new, monthly, reduced repayments are kept up with.
"The fall in the number of bankruptcy petitions in Swindon may come as a surprise to the many affected by the downturn. Nevertheless it reflects the overall trend for a fall in people choosing to go bankrupt," Andrew Wood, director at RSM Tenon in Swindon, explained.
He added that personal insolvencies are expected to rise as many households feel the aftermath of the recession, which could increase the popularity of IVAs in the future.
By Neil Burton
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- Government announces 'breathing space' for those needing IVA help
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- IVA answers to help those concerned about interest rate rises?
