IVA use has ‘increased significantly’ since 2005

There has been a steady increase in the number of people turning to Individual Voluntary Arrangements (IVAs) in the past seven years.

Data released by the Insolvency Service shows how just over 20,000 IVAs were taken out in 2005, but this figure rose to nearly 50,000 in 2011.

In the first nine months of 2012, some 35,708 IVAs have been started in England and Wales.

These figures highlight how people are continuing to turn to the measure in an effort to bring their long-term financial situation under control.

The option allows consumers to avoid bankruptcy, freeze interest and charges on all unsecured debts, stop unwanted contact from creditors and reduce their monthly repayments to an affordable amount.

However, individuals need to be aware that it is a legally binding agreement that will typically last for five years and requires commitment in order to be successful.

By James Francis