A leading Insolvency Practitioner has stated today that thousands of people across England and Wales that have been ’mis-sold’ an Individual Voluntary Arrangement (IVA) should have gone bankrupt instead.

Philip Long, an insolvency practitioner with PKF Accountants & business advisers, blames debt counsellors who profit from arranging IVAs for persuading people to enter into a debt solution that is inappropriate for their debt. It is important to get impartial advice when deciding what debt solution you will undergo to avoid further financial difficulties.

With rates widely expected to rise again next week, he believes the number of new insolvencies will increase dramatically in 2007. “Another rate rise next week, with more to follow this year will simply make the position worse for them,” Mr Long said.

He added, “The disgraceful thing is that there is an industry that is profiting hugely from arranging IVAs against their clients' best interest. That is morally reprehensible."