Recent figures show that personal bankruptcies have reduced by 20.1% to 6,919 in the final quarter of 2012 from 8,658 in the corresponding period of 2011.
Individual Voluntary Arrangements (IVA’s) fell to 10,986 in the same quarter (April 2012), from 13,027 for the corresponding period of 2011.
This would suggest that the public are coping better with the recession than anticipated until you note the rise in numbers of individuals entering into Debt Management Schemes during 2012.
As these figures are not officially recorded there is misleading information being brought to the public eye. Debt Management Schemes are not an arrangement in which you make a formal agreement with all your creditors and as such a debtor has no protection against one or more than one at some late date seeking a Court Order to seek a Bankruptcy Petition against an individual within a scheme.
Many individuals who enter Debt Management Schemes at a later date take the more formal route of an Individual Voluntary Arrangement in which your creditors are encompassed by the terms of your arrangement.
For more information of your options contact one of our advisors who will confidentially provide you with free advice on the best option available for you, the individual with personal financial problems.
Don’t be afraid to approach our friendly team.