8 February 2010
Individual insolvencies were 24.9% higher in the final quarter of 2009 than they were in the same period a year earlier, according to new statistics from the Insolvency Service.
A 26.3% rise in IVAs (Individual Voluntary Arrangements) and the introduction of Debt Relief Orders in the second quarter of 2009 contributed to the overall rise.
However, there were actually 5.5% fewer bankruptcies - suggesting that struggling borrowers have become more aware of the alternative options for tackling unmanageable debt.
"Although there are a number of options for people with unmanageable debts," said a debt expert for Think Money, "bankruptcy is still a valid option for many people, and the `right` debt solution depends on a number of factors. Anyone struggling with debt should speak with a debt adviser about the best way to improve the situation."
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Tags: debt, insolvency, IVA
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