Tuesday 15th of September 2009
Individual voluntary arrangements (IVA) are becoming increasingly popular among debt-riddled Brits, with recent high-profile cases such as Neil Morrissey highlighting their use, a report says.
MoneyExpert.com states that in the first three months of 2009, the number of IVAs in the UK reached 10,713, which represents an 11 per cent rise compared to the first quarter of 2008.
One reason why people could choose an IVA may be to avoid bankruptcy. In the case of Mr Morrissey, he hoped to repay his creditors the £2.5 million he owed within a three-year period and he stressed he did not want his debts written off.
"Banks and other lenders are now reducing their minimum payment thresholds - you previously had to agree to repay a minimum of £200 a month - meaning that IVAs are becoming viable for a growing number of people," the website explains.
The Men Behaving Badly actor told the News of the World he thought going bankrupt would be taking an easy way out of his financial obligations.
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 advice could reduce the stress people in debt feel
