Debt Advice You Can Trust welcomes figures released by The Insolvency Service on Thursday, showing insolvency statistics for April to June 2014. The figures reveal that the Individual Voluntary Arrangement (IVA) is by far the most popular debt solution for individuals.
There were 27,029 individual insolvencies in April-June 2014. Of these personal insolvencies, 14,571 where IVAs, this means that people choosing an IVA as a debt solution have risen 20.3% on the same quarter last year.
IVAs are becoming more popular with people with a low amount of surplus money after all essential bills are paid. IVAs with surplus income below £200 are now regularly being presented to creditors which wouldn’t have been the case a few years ago.
Individual bankruptcies are down on the same quarter last year at 5,452 and Debt Relief Orders dropped too with 7,006 individual cases passed. The Insolvency Service released a handy infographic on the Insolvency Figures.
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1 in 440 became insolvent
Debt Advice You Can Trust offers dedicated support for those seeking an IVA or a Lump Sum IVA. The lesser known type of individual voluntary arrangement, the Lump Sum IVA or full and final settlement IVA is an increasingly popular debt solution, especially for those who have recently received a redundancy payment. If you have a lump sum available, a lump sum IVA can be the quickest way to get out of debt.
In the 12 months prior to June 2014, 1 in 440 people became insolvent. Although overall insolvencies have fallen since 2009 the figures reveal a rise of 5.1% on the same quarter last year.