Insolvency and the need for an IVA is often prevalent after the heavy spending of Christmas and which has been intensified by the current credit crunch. A recent announcement of a council tax hike has compounded the problem.
The UK is currently in the grip of a debt crisis. All research seems to suggest that 2008 will represent a record year in terms of the number of people experiencing insolvency or being declared bankrupt. The government's decision to increase council tax is an additional financial burden which will see many opt for an IVA.
IVA – The Rise Of An Unpopular Tax
Council tax is said by 67% to be an unfair tax and when things are tight financially, a rise in this tax is invariably going to cause problems for many homeowners across the UK struggle to make ends meet. This is expected to lead to a rise in the numbers seeking an IVA, or individual voluntary arrangement, as the threat of insolvency or bankruptcy looms. An IVA is beneficial to those in financial strife as it is a legally binding arrangement to help you settle your debts as opposed a debt management plan which can still see your creditors pursuing you for monies owed.
IVA – Tighten Those Belts
The rise in council tax is invariably going to see many across the UK having to tighten the purse strings. The BBC reports that a Local Government Association study of 100 draft council budgets suggests that some councils may put up bills by as much as 5%. This level of increase will see the average council tax top £1300 and this may prove insurmountable for some homeowners who are already experiencing financial difficulty. Resultantly, many will opt for an IVA in order to get themselves on a firmer financial footing and avoid the stress or repossession, insolvency or bankruptcy.
IVA – Time For A Change To Council Tax?
Council tax will never be popular but is it fair? Chris Leslie from the New Local Government Network (NLGN) states that, "council tax is a real burden and it's becoming really unfair and outdated". This is seemingly the general consensus amongst the constituents of various councils across the UK. However, for those in a financial predicament and unable to pay off their debts, it seems that an IVA has become the best solution to return them to an even financial keel.
Talk To Varden Nuttall About IVA
Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0800 031 9802 or fill in our online enquiry form.