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Unmanageable debt leads to increase in IVAs

07/08/2009

Today`s official insolvency figures reveal a significant increase in individual insolvencies in England and Wales in the second quarter of 2009, primarily due to a rise in the number of people entering an IVA (Individual Voluntary Arrangement).

The number of individual insolvencies in the second quarter reached 33,073 - an increase of 27.4% on the same period a year ago, suggesting that increasing numbers of people were facing unmanageable debt.

The number of people entering an IVA increased from 9,807 in the first quarter of the year to 12,225 in the second, while the number of bankruptcies actually declined from 20,446 to 18,870.

A spokesperson for Debt Advisers Direct commented: "The latest statistics from the Insolvency Service are alarming news.

"People may be surprised to note that the number of IVAs rose at the same time that the number of bankruptcies declined. This may be partly due to the fact that more people facing unmanageable debt are aware of their options - IVAs are often viewed as a preferable alternative to bankruptcy, even though bankruptcy is still the most appropriate option for many people.

"Anyone struggling with unmanageable levels of debt should contact a professional debt adviser without delay."

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Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).

More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according