youthmoney

The number of individuals going bust between April and June rose to nearly 30,000.

Government figures, published today, show a significant rise in bankruptcy of 7.7% compared with the same period last year. The less restrictive individual voluntary arrangements (IVAs) were actually down by 0.7 %.

There are companies who aggressively promote IVAs to those “drowning in debt”. Their lure is the promise of a quick, easy and legal way of “wiping out” a large proportion of total debt. And, of course, they take themselves a substantial fee.

But perhaps the fears expressed this time last year of soaring IVAs were overstated. At least, the 23,000 IVAs so far this year are not on target for the 100,000 a year predicted by some.