Debt management levels set to rise

The number of people applying for bankruptcy or an IVA is set to soar by 10 per cent by the end of the year, according to a new study.

The survey, conducted by bankruptcy trade body R3 estimates that nearly 150,000 (146,948) people will become insolvent and require debt management during this year.

People seeking debt help may wish to consider an IVA. These can be available for people with over £15,000 of debt and won’t put the family home at risk. On top of that, it only takes five years to become debt free.

Steven Law, president of R3, comments that his organisation knows of nearly a million people struggling with their debt and fears it could “snowball” for many.

Kevin Still, director of Atlantic Financial Management, says: "Individual Voluntary Arrangements or IVAs are a popular alternative debt solution to petitioning for your own bankruptcy, especially for homeowners with limited equity in their property. We expect to see more middle class families struggling that meet the IVA criteria, who are technically insolvent."

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