Tuesday 1st of September 2009
In the UK, someone is declared bankrupt or insolvent every 3.97 minutes, new statistics from Credit Action show.
The report notes that this British debt problem is compounded by the fact that a property is repossessed every 11.5 minutes.
People who are severely in debt but want to try and avoid the negative consequences that can come with bankruptcy, including losing a home, may prefer to take the avenue of an individual voluntary arrangement (IVA).
IVAs may be the most suitable option for households which owe thousands of pounds to numerous creditors, but do not want to be declared bankrupt and would like to try to pay off debt by breaking it down into more manageable monthly repayments.
The Credit Action findings also state that during the last three months to end June, 125 properties were repossessed every day.
Rather than putting a home at risk, Britons could attempt to pay their creditors through an IVA, which could be favourable to lenders because they may be more likely to receive all of the money they are owed, something which would not occur during a bankruptcy.
By Chris King
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- 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 help you out of the vicious loan cycle
