IVA : Increased Risk Of Insolvencies.

With the festive season behind us, and the New Year under way, there is much speculation within the insolvency industry as to whether there will be a further rise in the number of people forced into personal insolvency, either Individual Voluntary Arrangements (IVAs) or bankruptcies, when the bills start hitting the door mats.

Here is part of an article, which can be found at the BBC website, which takes a look at this issue.

And remember that myIVA-Adviser.com is here to answer any of your debt related questions for free on 0800 088 7503, anytime.

"Overspending during the festive period will force 10,000 people to declare themselves insolvent in the next few months, say accountants Grant Thornton.

The firm predicts that before April, there will be 30,000 personal insolvencies in the UK.

It blames the increasing trend on greater borrowing and spending, higher interest rates and big utility bills.

The firm says 2006 will have seen more than 100,000 personal insolvencies. It says there will be even more in 2007.

"Last year, during the period straight after Christmas, when most bills started to hit the doormat, we witnessed the highest ever amount of people going into personal insolvency," said Mike Gerrard of Grant Thornton.

"We regularly see people, especially over Christmas and with the start of the sales, add to their problems in quite a substantial way.

"This year, things could be even worse."

Last year, there was a 55% rise in the number of people being forced by the burden of their debts to declare themselves insolvent.

In the first nine months of the year alone, this happened to 75,000 people in England and Wales.

The rise was largely due to a big increase in the number of people entering a process called an Individual Voluntary Arrangement (IVA), which is a formal alternative to bankruptcy.

The use of this procedure has apparently been encouraged by widespread advertising from specialist insolvency and debt advisory firms.

In turn, this has been blamed by the High Street banks for forcing them to write off several billion pounds in loans and credit card debts during the past year.

Some experts have predicted that 2007 will see IVAs become even more commonplace than Bankruptcy."

For further information on IVAs click here.

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