Citing Department for Constitutional Affairs statistics, Preston Today reports that almost one third more people chose the IVA rather than be forced into a bankruptcy situation.
And this trend is represents a cultural change in the attitudes towards debt management nationwide, according to head of personal insolvency at finance firm KPMG Paul Bateman.
In addition, Mr Batemen asserts that this shift is a permanent one, as interest rates rises continue put pressure on those Brits who have found themselves indebted.
The finance expert went on to conclude: “It is unsurprising that we are seeing more and more people choosing personal insolvency as the solution to their problems.”
A report earlier this month from KPMG suggested that there were enough people declared formally insolvent during 2006 to fill Wembley Stadium.