Wednesday 25th of November 2009
The individual voluntary arrangement (IVA) process needs to be highlighted to consumers that there is no stigma attached to receiving such financial support, one publication asserts.
Accountancy Age says that a number of insolvency practitioners are not happy with the government’s plans to make bankruptcy more accessible and instead IVAs need to be promoted as a more favourable - although still serious - alternative.
The current economic climate means that being able to apply for bankruptcy through the internet and post could prove dangerous, as people seek to go straight through this avenue, rather than considering other options.
Indeed, while an IVA is a long-term solution for unsecured debt - rather than a quick fix - at the end of the agreement, people can be reassured that their property still remains safe and their choice of career will not be impacted upon, unlike bankruptcy.
"Debtors should prove they tried to repay money and that bankruptcy was their last resort," the website states.
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
- IVA support may clear current account headache
