Bankruptcy ‘better than IVAs’
Bankruptcy is an easier option to clear debt than an individual voluntary arrangement (IVA), one industry expert has warned.
Philip Beck, licensed insolvency practitioner at freeivaadvice.co.uk, has said that IVAs are not always an "easy option" and can leave people with more debt than they started off with.
Despite his own prediction that IVAs will continue to increase in popularity, he has warned that the insolvency arrangement can be "a real struggle" for some.
"If, during the period they lose their job or get a divorce, they may lose the ability to make the payments and then the IVA fails."
According to Mr Beck, the quickest and easiest way out of debt is to file for bankruptcy, he said: "These days that's an easy option if you have no assets at all you can pay £500 at the local county court and your debt gets wiped."
Citizens Advice has recently revealed that it experienced an 11 per cent rise in the number of people seeking out debt advice this year.
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