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IVAs and Bankruptcies Soar Across Wales
New figures have revealed a massive increase in the number of Individual Voluntary Arrangements (IVAs) across Wales since 2000.
The Insolvency Service figures found that there was a stark 400 per cent rise in the number of IVAs in that country from 2000-06.
Welsh borrowers have seen ever-increasing interest rates in recent years, which have also taken their toll.
The same six-year period also saw a 156 per cent rise in the number of people declared bankrupt, according to the Service.
It added that this leap in the number of IVAs indicates that many people across Wales found themselves struggling with financial problems in 2006 - a view echoed by Welsh Liberal Democrat MP, Jenny Willott.
The Cardiff Central MP also suggested that things could get even more serious, saying, "These shocking figures are further evidence that the ticking personal debt time bomb we have long warned about is starting to explode in Wales.”
"Credit card debt is soaring, repossessions are rising and now we see a huge jump in the number of people in Wales going into bankruptcy or turning to IVAs."
Debt expert Julian King agreed but also warned that, "IVAs are an attractive option for those with debts, but by no means the easiest to survive.”
"Homeowners with debts should consider a mortgage rescue scheme such as Sell and Rent Back," he said.
"People eligible for IVAs should be very aware that this will basically mean living on the breadline for up to 60 months," stressed Mr King, who is director of the National Homebuyers group, which provides Sell and Rent Back deals for struggling mortgage-holders.
He said that Sell and Rent Back was often an attractive option for homeowners, due to its simplicity and cost effectiveness.
A Sell and Rent Back solution meant that homeowners are able to release cash value contained in their property, while still maintaining residency, explained Mr King.
IVA News posted on 04 April 2008
