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IVA : Record number of IVAs for 3rd Quarter of 2006
The Government have released record Insolvency figures for the 3rd quarter of 2006.
The total amount of insolvency cases recorded between July and September 2006 reached 27,644.
Of these 27,644 people, 15,416 went Bankrupt and 12,228 entered into an Individual Voluntary Arrangement (IVA).
The level of bankruptcies appears to be stabilizing, with only a slight increase of 501 on the previous quarter, whereas there is a continued increase of 1,123 in the number of Individual Voluntary Arrangements (IVAs) entered into.
Many financial commentators believe the overall level of new insolvency cases for 2006 will exceed 100,000 as opposed to 66,646 for the whole of 2005, which would mark an increase of 50 % year on year.
When the figures are broken down into each section, Bankruptcies and Individual Voluntary Arrangements (IVAs), its the level of Individual Voluntary Arrangements (IVAs) which have increased significantly, up nearly 120 % on the same period in 2005.
It is believed that more people are choosing the Individual Voluntary Arrangement (IVA) route as an alternative to Bankruptcy as Individual Voluntary Arrangements (IVAs) offer more suitable terms to the debtor, also Individual Voluntary Arrangements (IVAs) are being heavily advertised as a 'better' solution to Bankruptcy.
Experts are warning the figures could continue to rise should there be any 'shocks' to the economy.
The Daily Telegraph reports Steve Treharne of accountants KPMG as saying " With further increases in interest rates predicted, the pressure will increase.".
He Continued, " I fear that more consumers will fail to meet their minimum monthly credit card and loan payments and will have to consider formal steps to deal with their over-indebtedness."
If you would like further information on Individual Voluntary Arrangements (IVAs) take the link and choose one of our free guides, or call myIVA-Adviser.com for free on 0800 088 7503 and have a chat with one of our Individual Voluntary Arrangement (IVA) specialists
