Wednesday 26th of August 2009
Inquiries about bankruptcy and unemployment at a Citizens Advice Bureau in Northampton have risen as the effects of the recession continue to impact upon families, a newspaper reports.
During the first quarter of this financial year, the bureau dealt with 102 redundancy inquiries, compared with 55 the previous year, the Northampton Chronicle and Echo states.
With job security currently an issue for many Britons, a drop in household income could mean that debts begin to spiral out of control and bankruptcy for many is a favourable option.
However, rather than go down such a serious route, asking for individual voluntary arrangement (IVA) advice could be a better option than having personal financial details revealed in a bankruptcy hearing.
"The amount of debt we’re dealing with has gone up - last year it was £6 million, so far this year we have dealt with £4 million," Martin Lord, manager of Northampton Citizens Advice Bureau, tells the newspaper.
When debt runs into thousands and is owed to a number of creditors, an IVA can merge such commitments into a more manageable monthly payment.
Recently speaking to the Gazette Live, Joe Michna, the manager of Hartlepool Citizens Advice Bureau, said the average debt of his clients stands at £20,000.
By Mark Waterman
- 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
- As a part-time carer could an IVA prove to be helpful?
