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IVAs, bankruptcies & DROs - "the end is not in sight"

The Q3 insolvency figures have been described as "overwhelming, but not surprising", the BBC reports.

Commenting on the numbers of IVAs, bankruptcies and DROs in the third quarter of the year, Louise Brittain of accountants Deloitte stated, "These figures are overwhelming, but not surprising, and unfortunately the end is not in sight."

Last Friday (November 6th), when The Insolvency Service published its figures, we discovered that 35,242 people in England and Wales had been declared insolvent in the third quarter of 2009.

Of these, 18,347 were declared bankrupt, 12,390 entered an IVA and 4,505 entered a DRO - a Debt Relief Order, which is a new form of insolvency introduced on April 6th 2009 to help people with relatively low debts, little disposable income and few assets.

"Looking at IVAs specifically," said a spokesperson for the IVA Advisory Centre, "34,422 people have already entered an IVA this year - in just the first nine months.

"If the number of people entering an IVA remains constant in the next quarter, this will mean almost 47,000 people will have entered an IVA in 2009 - a huge increase on last year`s figure, and even higher than the record 44,332 we saw in 2006."

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The IVA Advisory Centre are a licensed Insolvency Practice, offering free debt advice as well as IVAs and a comprehensive range of other debt solutions. If you are in debt and would like to explore your options, contact one of our advisers today.