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Consumers `struggling to cope with mounting debt` Bankruptcy increases by 7% `More Brits applying for personal loans` 70% of Brits `without unsecured loans` Pre-paid cards `more popular as debt rises` IVAs `a real alternative` to bankruptcy Brits `trying to escape credit crunch` by moving abroad West Sussex consumers suffering debt IVA agreements increase Industry body welcomes IVA mailing probe OFT to target bogus IVA companies IVAs can be "helpful" for large debts IVAs - consumers warned about bogus deals Insolvency rates rising IVAs can be "better option" than bankruptcy IVAs are `helpful but should not be taken lightly` IVAs `good to get out of tricky situations` People should "think very carefully" before entering an IVA IVA `saved businessman`s house` Govt unveils new IVA code

IVAs can be "better option" than bankruptcy

06/05/2008

Entering an Individual Voluntary Arrangement (IVA) can be a "better option" than bankruptcy for some people as the debtor maintains some power over their finances, an industry expert has claimed.

While IVAs should not be treated as a "get out of jail free" card, they can be helpful for consumers who are struggling with their finances but who do not want the reputation associated with bankruptcy, ADDIDI Wealth stated.

Anna Sofat, founder of the wealth management company, said that those considering entering an IVA must seek professional debt advice beforehand.

She added: "It depends on personal circumstances. I would not advocate anybody to take bankruptcy lightly because you have consequences for your credit history."

An IVA is an agreement between the debtor and their creditors, in which a portion of the debt is agreed to be paid over a five-year period. After that period has elapsed, 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