Record IVA levels predicted in 2009
Record IVA levels predicted in 2009
Wednesday 31st December 2008
The accountancy firm predicts that a record 150,000 people will file for bankruptcy, enter into an IVA or use a new debt relief order in 2009, representing a 50 per cent increase on this year's levels.
Mark Sands, director of personal insolvency at KPMG, said that IVAs are often used by people who realise that their combined repayments on personal loans and credit cards have become unmanageable.
"By the time people realise the extent of their problems, their total debts will have been swelled by interest, charges and even further borrowing to fund the minimum repayments," he explained.
According to KPMG, this year the UK's average IVA debtor owed £47,800.
Mr Sands added: "We estimate that around 37,000 people used the IVA procedure to write off a portion of their debts in 2008."
Data from Credit Action states that the country's average household debt is now £9,633 excluding mortgages.
News article brought to you by SimpleIVA - UK IVA specialists.
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