Insolvency Figures Show Need For Professional Debt Advice, Say The Debt Counsellors
Debt help organisation The Debt Counsellors say professional debt advice can help those at risk from insolvency, as the latest official statistics show bankruptcy is still on the rise in England and Wales.
(PRWEB) February 3, 2007 -- The latest official statistics show that insolvency and bankruptcy are still on the increase in England and Wales, but debt help experts The Debt Counsellors say that professional debt advice can help those at risk.
According to the Insolvency Service, there were 29,804 individual insolvencies in England and Wales in the fourth quarter of 2006 on a seasonally adjusted basis. This represents an increase of 7.1% on the previous quarter and a rise of 44.1% on the same period of 2005.
These insolvencies resulted in 17,063 bankruptcies, 9.6% up on the previous quarter and 24.8% up on the corresponding quarter of the previous year.
However, The Debt Counsellors say it is essential for those at risk from insolvency to get professional debt advice as in many cases bankruptcy can be avoided through the Individual Voluntary Arrangement, or IVA.
Suitable for people with unsecured debts of over £15,000, an IVA can write off a large proportion of personal debt and split the rest into affordable installments over five years. Unlike bankruptcy, an individual's assets are safe under an IVA, providing the terms of the arrangement are adhered to, and there are no restrictions on doing business.
Other advantages of an IVA include interest being frozen, legal action being halted or prevented and County Court Judgements (CCJs) being wiped.
IVAs are growing in popularity as a means of dealing with insolvency: there were 12,741 IVAs registered in England and Wales in the fourth quarter of 2006 on a seasonally adjusted basis, an increase of 3.9% on the previous quarter and a rise of 81.9% on the corresponding period of 2005.
John Porter, a senior counsellor with The Debt Counsellors, says: "As the figures show, personal insolvency continues to rise and bankruptcies are up too.
"However, it is encouraging that more people are using the IVA as a way of dealing with insolvency as in many cases it is an effective way of avoiding the serious financial penalties of bankruptcy."
Porter adds: "Anyone concerned about the risk of insolvency should get professional debt advice to find out about all the options that are available."
For more information on personal insolvency, IVA and bankruptcy, visit: http://www.debtcounsellors.co.uk
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