Tuesday 16th of November 2010
An individual voluntary arrangement (IVA) may be used by people who are looking to clear their monetary burdens but have concerns about the stigma attached to bankruptcy.
Declaring liquidation can be an embarrassing process for individuals as it is often perceived to be the ultimate failure of personal finance, according to advisors at MoneySolve.
"The IVA seems to have less of a taboo about it - perhaps because the debtors at least feel like they are paying back what they can realistically afford," the company noted.
In addition, while the details of a bankruptcy can be published by newspapers, people entering into an IVA may feel reassured that the details of the arrangement can remain private.
According to the debt firm, it is only recently that the financial solution has become more readily available to those who are deep in the red.
Earlier this month, head of bankruptcy at RSM Tenon Mark Sands said he expects the current high levels of personal insolvencies to stay the same until the London Olympics in two years' time.
By Chris King
- 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
- IVA answers may assist women in financial services
