As the debt situation amongst UK consumer continues to worsen at an alarming pace, more and more people are being forced to consider bankruptcy, IVAs and trust deeds. Many people forget that these particular debt instruments are there for their protection and those who are in serious debt should take advice about their next step. As more and more people in the UK finally come to their senses and take advice from the many debt agencies around the country, experts expect a significant increase in bankruptcies, IVAs and trust deeds.
The stigma attached to these situations has been significantly reduced over the last decade with growing numbers finally giving in and ensuring they are able to draw a line under their debt situations and effectively “start again”. There are of course various conditions attached to any potential release from your debt and these need to be respected as failure to abide by these conditions could have serious consequences.
While bankruptcy is obviously the most serious situation, there will be many occasions over the next few years where this option is correct for the situation many of UK public will find themselves in. IVAs and trust deeds (the Scottish equivalent of an IVA) will probably be more common as they will see a part of a person’s overall debt repaid to creditors, even though this may be significantly less than the amount due.
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