Friday 7th of August 2009
The number of people entering into Individual Voluntary Arrangements (IVAs) hit 12,000 in the second quarter of 2009, an insolvency practitioner has claimed.
Speaking to the Press Association, Mark Sands, director of personal insolvency at Tenon Recovery, said that the number of people declared insolvent in this period will also reach record levels at around 33,000.
His comments came ahead of official insolvency data due to be published later today.
Despite the rising number of insolvencies, there is expected to be a marginal drop in the number of bankruptcies, with IVAs offering an alternative to a growing number of people.
On a non-seasonally adjusted basis, the number of people taking out IVAs in the first quarter stood at 10,000.
For the first time, the Insolvency Service figures will also show the number of people taking out Debt Relief Orders (DRO).
The organisation urges anyone taking out an IVA or DRO to seek independent legal advice before doing so.
- 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
- Workers crumbling under debt worries could turn to IVAs for rescue
