Friday 22nd of January 2010
More individual voluntary arrangement (IVA) questions could be asked by households in financial trouble if one member loses their job in the coming weeks.
According to a new survey, just over a third of businesses think the outlook for the first three months of the year looks positive - which could result in more job losses as firms strive to make cuts.
However, just eight per cent of insolvency practitioners believe the first three months will prove beneficial for UK companies, R3 reports.
The opinion of such experts could be worth listening to, as many will have approved IVA applications for households which have seen a family member lose their job.
While an IVA cannot be undertaken by someone who is unemployed, a person who does work may decide to follow such a repayment plan if their household coffers as a whole have taken a hit and joint unsecured debts can no longer be repaid at current levels.
"Insolvency practitioners know that creditors tend to act more aggressively as we come out of a recession and corporate insolvencies continue to rise," explains Peter Sargent, president of R3.
More corporate insolvencies will see an increase in the number of people made redundant, which could in turn see a rise in IVA applications.
By Neil Burton
- 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 advice could make families more secure
