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IVAs reach record high

The number of people entering an IVA (Individual Voluntary Arrangement) reached a record high in the second quarter of the year, statistics from the Insolvency Service have just revealed.

Released this morning, the figures show that a record 13,466 people in England and Wales entered an IVA between April and June this year.

This was up 10% on the same time period last year, when 12,225 people entered an IVA.

It was a more substantial increase - of 14% - on the first quarter of 2010, in which 11,782 people entered an IVA.

So far, in the first half of the year, 25,228 people have entered an IVA in England and Wales. If this is repeated in the second half of the year, the annual total (over 50,000) will be a new record, significantly higher than the previous record - the figure of 47,641 recorded in 2009.

When it comes to other forms of insolvency, the number of people entering a DRO (Debt Relief Order) rose again to reach 6,295. Only introduced in April last year, the number of people entering a DRO has increased in every quarter since then - the figure for Q2 2010 is an increase of 218% on the same time period last year (the first quarter in which DROs were available).

The number of bankruptcies, meanwhile, actually dropped by around 20% on the previous quarter. In Q2 2010, there were 14,982 bankruptcies in England and Wales - the lowest figure we`ve seen since the end of 2007.

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The IVA Advisory Centre is a licensed Insolvency Practice, offering expert 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.