Bankruptcy Still a Problem say Debt Counsellors
(PRWeb) December 31, 2006 -- The IVA is proving an increasingly popular method of avoiding bankruptcy as insolvency levels continue to rise in the UK. However, debt help experts The Debt Counsellors insist that too few people are seeking professional debt advice for their debt problems and risk bankruptcy as a result.
The IVA, or Individual Voluntary Arrangement, was introduced in 1987 to help people with serious debts avoid bankruptcy. Accountants KPMG say that £1.4 billion of bad debts have been written off during 2006 through the IVA. However, the firm also say that around 110,000 people have become insolvent during the last 12 months and government statistics show that personal bankruptcy is still a growing problem.
According to the Insolvency Service, in the third quarter of 2006 there were 15,416 bankruptcies, an increase of 2.7% on the previous quarter and a rise of 26.6% on the corresponding quarter of 2005.
The increase in bankruptcy is consistent with the UK's rising total of personal debt, now around £1.3 trillion and increasing by approximately £1 million ever four minutes.
With this is mind, The Debt Counsellors say it is imperative that people worried about bankruptcy seek professional debt advice as soon as possible.
John Porter, a senior counsellor with The Debt Counsellors, said: "IVA levels are increasing as people are looking to avoid bankruptcy, but the figures also show that personal bankruptcy continues to rise.
"The UK is in the grip of a serious personal debt problem and it is essential that those people who are affected face up to their situation and contact a professional debt counsellor who can give help and advice on the best way out of the situation according to the individual circumstances."
Porter adds: "In many cases of serious debt, bankruptcy can be avoided and the best way of finding out how is contacting a debt counsellor.
The Debt Counsellors offer free, confidential advice on bankruptcy and all kinds of debt problems. For more information, see: http://www.debtcounsellors.co.uk
###
Related Articles:
How To Pay Down Credit Card Debt
Credit card debt hampers our lives It gets in the way of our days, it interrupts our blissful nights, and it destroys our futures
Defeating Credit Card Debt With Self Control
Credit card debt is a major social problem in some Western countries. To rid yourself of credit card debt, it is best to recognize the problem as both a social and individual problem.
Fresh Start Forms is on a Mission to Teach 1 Million People How to Live Debt Free in 2008
During his most recent guest appearance on WGN's The Money Show, Edward Sanchez co-founder of Fresh Start Forms, LLC stated his company's mission to teach 1 million people how to live debt free in 2008. When asked if their mission was related to Oprah's Big Give, Sanchez stated they are not associated, although he believes they share a common goal; to empower as many people as possible.
Debt Consolidation Made Easy for Students
Be free of Student Debt Forever by Consolidating those Loans! Paying off student loans and debt through wise consolidation can save thousands of dollars. Then you can have the life you wish without debt and a positive monthly cash flow. Get out of debt forever, pay off those pesky student loans by consolidating and get free! Our step by step practical guide will move you toward to success and freedom. How to accomplish this? 1) Look honestly at the amount of debt you owe on your student loans. Now even though you have more outgoing each month to pay off these loans (then you make) PAY YOUR SELF FIRST i.e... make a personal NEST EGG that has absolutely NOTHING TO DO WITH YOUR STUDENT LOANS! 2) Call the institution i.e.. school or bank whi...
The Top 10 Causes Of Debt
As I was cruising around the internet looking for ways to help you be frugal and save money, I ran across a list that I had never seen before. It was a Top 10 list for the Causes of Debt. Not only did I see this list once, but it popped up on three different financial sites that I routinely track. Wow! I quickly scanned the list and frowned.
Using A Home Equity Line Of Credit To Repay Credit Card Debt
Two financial phenomena have taken place in the UK over the last decade. On the one hand, we have increasing become a nation of debtors, running up trillions of pounds in short-term debt. On the other hand, house value have increased exponentially during this period and many of us now have massive amounts of in-built equity value in our homes. It may seem natural, therefore, to use the proceeds of one to pay off the debts of the other. However, using a home equity line of credit (HELOC) may not be the best method of debt consolidation available to you.
Bill Collector In A Box Launches ?Donate a Debt? Program
Entrepreneurs and small-business owners can donate uncollectible accounts to cash-strapped charities
Growing Your Company Without Debt
Invoice factoring, or the sale of accounts receivable, is one of the oldest forms of financing. Invoice factoring, also know as Accounts receivable factoring, is a tremendous and economical method to assist in the management of cash flow and the delivery of working capital for your business needs.