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Debt in Swindon `on the rise` New debt management option "a positive step" Consumers `should get advice over IVAs, bankruptcies and DROs` Women `less likely to file for bankruptcy` Councils `filing for bankruptcy for those who fail to pay tax` Consumers lying about finances Rise in bankruptcies revealed Scottish bankruptcies on the rise, new figures suggest Borrowers `accruing more debt before seeking IVAs` Bankruptcies `high in south-west` Landlord bankruptcy enquiries `on the up` Increase in bankruptcy figures for another CAB Bankruptcy "best option" for some households 90% "choosing to `jump before they were pushed`" R3: Bankruptcies and IVAs to rise over next 12 months Insolvencies rise for automotive companies Fuel price hike sparks bankruptcy fears London bankruptcies have "quadrupled" Government department identifies fall in bankruptcy levels Insolvency figures `hide true extent of debt problems`

Borrowers `accruing more debt before seeking IVAs`

17/09/2008

People experiencing debt problems in Britain are waiting longer and borrowing more before they enter into Individual Voluntary Arrangements (IVAs), new figures suggest.

Produced by comparison site IVA.com, the statistics reveal that the average debt accrued prior to entry into IVAs was £47,000 in August.

This represents an increase of 50 per cent from May, the Financial Times reports.

In addition, it was found that the number of consumers struggling with debt who took out such arrangements fell by 12 per cent in the second quarter of this year, compared with the same period in 2007.

Commenting on the findings, David Kerr, chief executive of the Insolvency Practitioners Association, expressed surprise.

He said: "With the economy as it is and personal debt levels high, we wouldn`t expect the number of IVAs to be down."

In an article featured recently on MSN Money, Frances Walker described IVAs as a "less onerous alternative" to bankruptcy, but urged consumers to make sure they seek expert advice before entering into them.

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