Monday 9th of November 2009
Almost 250 people petition for their own bankruptcy every day, according to global financial experts KPMG - people who may wish to consider an individual voluntary arrangement (IVA) as an alternative last attempt to rescue their finances.
That number indicates there are still many Britons with serious financial problems who cannot shake off the shackles of debt despite all-time low interest rates.
John Bangham, director of personal insolvency at KPMG, said: "With many people already living beyond their means, this downturn in the economy will force a number of people to take drastic action, such as applying for bankruptcy."
Recent figures from the Insolvency Service suggest debtors are now turning to other methods of easing their financial burden - such as IVAs and debt relief orders.
An IVA could be more attractive than bankruptcy because it can make repayments easier and more affordable to cash-strapped consumers and reduce the risk of losing a family home.
By Hayley Jones
- 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
- Information on IVAs to help Brits avoid overdraft woe?
