140 people apply for IVAs every day
New statistics fromt he insolvency service show that in the second quarter of 2010, 140 people applied for an IVA each day.
Individual Voluntary Arrangements are now at an all time high of just over 38 per cent of all personal insolvencies, as people struggling to repay their debts turn to an IVA to address their debt problems.
The total number of IVAs agreed in the second quarter of 2010 was up by approximately 10 per cent when compared to the same period in 2009.
Partner at Pricewaterhousecoopers, Pat Boyden said “This figure might seem alarming, but it does indicate that individuals facing financial pressures are taking affirmative action to address their difficulties.”
“There does remain a risk that a significant percentage of these IVAs will not run their course during the potentially stormy times ahead.”
Steven Law, president of insolvency trade body R3, said: “Unfortunately, the personal insolvency figures are just the tip of the debt iceberg. The true size of the UK’s debt problem remains hidden as insolvency industry estimates there are an additional 500,000 people currently in informal debt management plans and close to a million people are struggling with their debts and have not yet sought help.”
Craig Gedey, Marketing Manager at Debt Advisory Line – www.debtadvisoryline.co.uk said: “These estimated numbers are staggering and could unfortunately reveal the true extent of debts UK families may be dealing with.”
“Anyone who is struggling to keep up with repayments on their debts should seek professional debt advice as soon as possible.”