Insolvency is a financial predicament that will affect record numbers in 2008 and a recent report in The Times has shed some light on the characteristics that typically make up the average individual in debt. The credit crunch and an on-going debt crisis are the key causes of the anticipated surge in insolvency that will see many turn to an individual voluntary arrangement to avoid the precipice of bankruptcy.

Insolvency – The Image of Debt

The traits of an individual in debt may not be quite as black and white as many would have thought. With insolvency, and as a consequence, individual voluntary arrangements, set to rise again in 2008, a report in The Times has painted a portrait of Mr Debt. As it transpires, ‘Mr Debt' is 42 years of age and will typically live in an area where insolvency and bankruptcy is already prevalent, such as Wales or South West England. ‘Mr Debt' will be determined to find employment this year and it was being made redundant 2 years previously that snowballed his financial problems. He won't have meant to get so deeply in debt but the car loan, personal loan and a raft of credit cards will have seen the debts begin to spiral out of control. When money runs out, ‘Mr Debt' will put purchases on credit card and will soon rack up £61,000 in debt. These characteristics are typical of those in debt and show why insolvency is set to rise in 2008. An individual voluntary arrangement eradicates an individual's debt and permits them to pay their debt off in a timely manner whilst avoiding the financial implications that come with bankruptcy.

Insolvency – Individual Voluntary Arrangement Releasing The Grip Of Debt

The spectre of bankruptcy and insolvency hovering over you is never a pleasurable one and insolvency expert, Mike Gerrard, talks about the impending insolvency surge, "From here on in, it's going to be a rough ride for many individuals and the numbers going insolvent will rise". An individual voluntary arrangement is proving a popular way of tackling spiralling debts and avoiding the necessity to declare bankruptcy. Those who opt for an IVA (individual voluntary arrangement) will no longer be pursued by creditors and will pay back their debt in a pre-agreed time frame.

Talk To Varden Nuttall About Insolvency

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.