There has been an alarming rise in the acquisition of IVAs (Individual Voluntary Arrangements) in recent years. Personal debt problems have seen personal insolvencies increase quite dramatically. In 1998 there were 24,500 insolvencies registered, of these 5000 were IVAs, the rest were bankruptcies.

These figures stayed at a level till 2004 when the shocking figure of 46,650 personal insolvencies were logged. Of this figure 11,000 were IVAs and 35,000 were bankruptcies. Things seem to be getting worse, as the first quarter of 2007 alone saw 13,233 IVAs and 16,842 bankruptcies filed. If we are going by these figures, then by the end of 2007, there will approximately 52,500 Individual Voluntary Arrangements entered into. The debt just keeps on growing.

This is not a good sign for debt!

The IVA was initially set up to help failing entrepreneurs in debt avoid bankruptcy, however thanks to heavy television advertising, it is now the average members of the public who use them. Despite this fact, the increase of the use of Individual Voluntary Arrangements may not be able to be blamed so obviously on the “credit card nation” we have become!

A recent survey suggests that people are becoming 'consumer savvy' and are not reaching for the plastic as quickly as we all condemned ourselves for. In reality the majority of IVAs are acquired as peoples' financial circumstances change into a debt nightmare due to more personal issues such as divorce, redundancy or illness!