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Credit crunch `sees professionals considering IVAs`

28/03/2008

The number of high-earning professionals enquiring about Individual Voluntary Arrangements (IVAs) has rapidly increased in the first few months of 2008, according to an industry expert.

As a result of the credit crunch affecting nearly all walks of society, property developers, accountants, lawyers and even investment bankers have all been looking at the possibility of joining an IVA scheme, according to IVA.com.

Property professionals are said to be at the highest risk of personal debt, as tighter mortgage conditions join with a slowing housing market to expose them to financial problems, website director Terry Balfour told the Scotsman.

Mr Balfour added: "The level of contact from people whose finances would usually be regarded as watertight indicates just how pervasive the current crisis is and points towards more casualties to come throughout the year."

An IVA is an agreement between the debtor and their creditors, in which a portion of debt is paid during a five-year period. After that time is over, the debt is written off.

Many debts unaffected by base rate cut 09/01/2009 - Yesterday, many borrowers welcomed the Bank of England’s base rate 1.5% base rate – an historic low 08/01/2009 - Today’s base rate cut by the Bank of England’s Monetary Gas price cuts expected 07/01/2009 - Energy company Scottish Power has announced the launch of a Personal debt about £1.5 trillion 07/01/2009 - The UK’s personal debt stands at around £1.5 trillion, according