An IVA can prevent or cease legal action, wipe off a large percentage of the debt and allow the debtor to carry on earning while paying off the remaining debt over five years in instalments based on what they can afford.
(PRWEB) June 25, 2006
The UK's debt problem continues to worsen, with the latest research suggesting that instances of extreme debt are doubling on an annual basis. However, The Debt Help Site insists that many of these cases need not result in personal bankruptcy, with the Individual Voluntary Arrangement (IVA) providing a way out.
According to advice charity the Consumer Credit Counselling Service (CCCS), the percentage of people seeking help for debts of more than £100,000 nearly doubled in 12 months.
Personal bankruptcy is also rising sharply. The Insolvency Service reports that there were 23,351 individual insolvencies in England and Wales in the first quarter of 2006 on a seasonally adjusted basis - an increase of 12.9% on the previous quarter and an increase of 73.4% on the same period of 2005.
This translated into 15,389 cases of personal bankruptcy - 12.5% up on the previous quarter and 51.2% up on the corresponding quarter of the previous year.
However, the IVA is a solution for serious debts that avoids the loss of assets, financial restrictions and stigma that comes with personal bankruptcy.
Terry Galvin, editor of The Debt Help Site, explains: "An IVA is suitable for people with debts of over £15,000 and a regular income.
"An IVA can prevent or cease legal action, wipe off a large percentage of the debt and allow the debtor to carry on earning while paying off the remaining debt over five years in instalments based on what they can afford."
Galvin adds: "Anyone with serious debts should get professional advice and find out more about the IVA before getting caught in the personal bankruptcy trap."
For more information see: http://www.debthelpsite.net/