IVAs ‘increasing in debt elimination usage’
Individual voluntary arrangements (IVAs) are an increasingly popular mode of debt elimination, it has been claimed.
The ease with which IVAs may be obtained means many people are arranging the debt elimination method over the phone, according to an expert.
Paul White of Belgravia Insurance Consultants suggests that IVAs and bankruptcy are increasingly acceptable ways of tackling a difficult financial situation.
“There has been an increase in IVAs, even such that it’s not actually done face to face anymore,” he advises.
“If it can be done remotely then it’s really more of a streamlined process rather than someone sitting down face to face.”
He adds that admitting to financial difficulty has “got a lot easier and there’s less stigma attached”.
Changes to the law introduced on April 1st 2004 mean bankruptcy periods may now last 12 months, whereas they previously would have lasted two to three years.
An IVA may be one means of reducing the total amount which must be paid back as the first step towards debt elimination.
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