Nearly 400 (388) people every day are being declared insolvent in the UK, new figures have revealed. The stats from accountants RSM Tenon show that over 35000 (35038) people entered insolvency in the first quarter of 2010, including over 11000 (11046) taking out an IVA. Obtaining an IVA depends on a number of criteria, such as being over £15000 in debt, having at least three creditors and at least 75 per cent of those creditors agreeing to the terms of the IVA. If it’s accepted, payments will be made over the course of five years. Mark Sands, RSM Tenon’s head of bankruptcy, commented that “people need to understand the consequences of taking on debt and be given incentives to rebuild their savings.”
Debt lag drives thousands to IVAs
May 4, 2010 By
