Friday 6th of November 2009
The number of Britons seeking individual voluntary arrangement (IVA) help is up by more than a fifth in the latest Insolvency Service statistics.
Published this morning (November 6th), the quarterly bulletin from the government body reveals that 20.9 per cent more people sought IVA help in the third quarter of the year than in the same period of 2008.
In all, this took the total number of IVAs arranged during the three-month period to 12,390.
This means that more than a third (35.2 per cent) of all insolvencies during the reporting period were carried out using IVAs.
Debt relief orders (DROs), introduced in the previous quarter, were used by 4,505 people to help tackle their outstanding debts.
However, for many people IVA help could be the better option as DROs can be used to deal with debts of no more than £15,000.
With IVAs, larger debts owed to multiple lenders can be tackled, with the opportunity to freeze interest and put in place an affordable repayment schedule.
Written by Kimberley Parsons
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