IVA’s accounted for a large proportion of the 132,142 people who were declared insolvent this year according to figures released today by The Insolvency Service.

50% of this figure declared bankrupt, however, 50% managed to to avoid this by signing onto an Individual Voluntary Arrangement (IVA) or a Debt Relief Order. The overall amount increased by 26% on last years figures to a record high.

IVA’s are a way to avoid bankruptcy and clear your debt in a more controlled way with less impact on your credit rating. The Debt People are IVA advice specialists and have help many people arrange an IVA every year.

Corporate and Business Insolvency

The number of companies liquidated has fallen in the last three months of 2009 to 4,566. This is a fall of 1.7 per cent against the previous quarter and down 1.1 per cent year on year.

This shows that the country has signs of a recovery beginning, however, there are a large number of businesses who may have been saved by HM Revenue & Customs's “time to pay” scheme, which has enabled struggling companies to defer more than ¬¨¬£4 billion of PAYE tax and national insurance liabilities.