Bankruptcy and IVAs ‘help credit debt management’
Options such as bankruptcy and individual voluntary arrangements (IVAs) are an increasingly popular feature of credit debt management, it has been suggested.
Law firm Macbeth Currie claims that much of the social stigma associated with declaring bankruptcy has been eliminated in recent years.
Senior consultant Duncan Philp explains that while a number of small businesses go bankrupt “on a weekly basis” due to poor planning, individuals may also use bankruptcy or IVAs as a means of credit debt management.
“With personal finance it’s a case of people just loading up credit cards because they’re so easy to obtain,” he states.
“It just seems to be a modern phenomenon that people are perfectly happy to go through.”
IVAs are available to individuals with more than £15,000 of debt, whether or not a bankruptcy order has already been obtained.
The assistance of expert advisers could help consumers to decide whether IVAs are the best solution for their personal circumstances.
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