IVAs 'are a lifeline for many'
Published On 14 June 2007
IVAs provide people facing bankruptcy with an additional chance to sort out their finances, an industry expert has claimed.Andy Davie, the site manager of IVA.co.uk, explained that IVAs allow people with debts to sort out their finances and start again with a clean slate after five years.
He described the financial tool as "an absolute lifeline", but added that IVAs had to be used correctly" to be effective.
"And at the end of the day, the creditor receives more dividend than [through] bankruptcy, and the debtor has the chance to start his life, or her life, again, after five years," Mr Davie added.
For people thinking about an IVA to sort out their financial problems, Mr Davie offered some advice: "Speak to two or three different companies… try and meet their IP [Insolvency Practitioner] in person and to make sure they fully understand the ins and outs of IVAs, especially if there is equity release involved."
Recent figures from the Insolvency Service show that 13,233 people took out an IVA in the first quarter of the year, 47.6 per cent more than did so in the first three months of 2006.
