Tuesday 11th of August 2009
The rapid rise in the number of people seeking IVA help in the second quarter of 2009 is indicative of a desire for debtors to work with their lenders in order to overcome their financial difficulties, it has been suggested.
Pat Boyden, partner and personal insolvency expert at PricewaterhouseCoopers, explains that IVA help also benefits the lender by allowing a compromise, rather than writing debts off completely through bankruptcy.
"The sharp increase in IVAs reflects the desire of individuals to reach an agreement with their creditors and the willingness of creditors to compromise," the industry commentator observes.
His insight follows the publication of official figures by the Insolvency Service which show a 27.4 per cent increase in the number of IVAs entered into during the second three months of 2009, compared with the previous year.
Commenting on the inclusion for the first time of statistics pertaining to Debt Relief Orders, the Insolvency Service claimed that the uptake of the new product by almost 2,000 people in the second quarter is an "encouraging start".
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
- IVAs may help the financially insecure drop their debts
