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.

IVA numbers rise as personal insolvencies hit record levels is a post from: The Debt People

The British Gas announcement confirmed that the company will cut gas prices by an average of 7% immediately. It will be welcome news to people struggling with their finances and in need of debt advice.

According to the company, the average customer will save £55 a year because of the price cut, and they estimate that around eight million households will be better off. British Gas added that this is the third price cut that they have implemented in the past 12 months.

In the wake of the current global credit crisis, energy suppliers have been criticised for not allowing consumers to benefit from cuts in wholesale oil and gas prices, by way of lower bills. From February last year, wholesale gas prices have dropped sharply, and domestic prices dropped in the spring.

After pressure from consumer groups and the regulator British Gas said it had removed the different price structure for pre-payment gas meters. This means that those who settle bills by cash or cheque pay, on average, the same for their energy as pre-pay clients.

Customers benefit to a different degree depending on which part of the UK they live in as well as what price plan they are on. The price cuts are taken as an average. Electricity prices will remain unchanged for now.

The news will be welcomed by debt advice providers struggling to cope with over-committed consumers that are buried under a mountain of credit card debt and other monthly bills.

British Gas price cut could help ease IVA and Debt Management worries is a post from: The Debt People

According to the bank of England, unsecured consumer credit rose £52m in the month of December. This was mainly driven by credit card borrowing.

For the same period, the number of mortgages that were approved for house purchases fell slightly compared with the previous month, to 59,023. This is still higher than the past six month’s average.

IVA and Debt Management companies have noticed a trend during the downturn where consumers have been inclined to pay off debts, however this appears to be reversing. Some people have been reluctant to save particularly with interest rates being so low. For five months in a row, repayments have outstripped new unsecured consumer credit.

The main cause is credit card debt which has risen by £195m. In an effort to get out of debt, many people have enterd debt Management progarammes or signed up for an IVA. The demand for overdrafts and personal loans has remained low, with repayments topping new agreements by £143 million.

The total amount of net borrowing by individuals rose by £1.2 billion in December, which is double the average of the previous six months. Most of the borrowing is in the form of mortgages.

IVA and Debt Management worries as borrowing on the increase is a post from: The Debt People

The news comes as the country is just emerging from the longest recession for many years. Consumers struggling with debt problems have been approaching debt management companies in increasing numbers seeking IVA advice, or other ways to get out of debt.

Energy bills are expected to be 20% more expensive than for the same period last year, despite a fall in the wholesale price of gas. The combined charge for gas and electricity bills for a typical household are expected to be £104 higher for the quarter.

According to figures from the Daily Express annual bills have increased from an average £543 to £1,233 since 2003. This represents a rise of 127%.

An IVA, or Individual Voluntary Arrangement, is a debt management solution that allows consumers to consolidate their debts into a single monthly payment without the need for a loan. The monthly repayment on an IVA is set at an affordable level and the term of the arrangement is usually 5 years.

Any remaining debt can be written off at the end of the term. An insolvency practitioner will be required to set up and supervise the arrangement, and it is recommended that all consumers consider all of the available options before entering into an agreement. For IVA help it is recommended that you contact a reputable company.

The debt management industry is concerned that the wholesale price of gas fell by 60% during 2008 and 2009, but the savings made by the companies have not been passed on to households in the form of lower bills. A 30% increase in energy consumption has been estimated for this winter as a result of the freezing temperatures over this period.

IVA and Debt Management firms concern over energy bills is a post from: The Debt People

The global credit crunch may have convinced us to stop spending for a while, however this trend may be starting to reverse.

According to figures released by Unbiased.co.uk, for every £1 that is being saved in the UK, 26p is borrowed. This is in sharp contrast to the second half of last year, when for every £1 saved, £1.61 of debt was actually repaid.

It would seem that more households are using credit to fund their lifestyle, and this will inevitably lead to more people getting themselves in over their heads. Whenever there is a jump in borrowing, there soon follows an increase in the number of people applying for debt management assistance and IVA advice.

In the period from April through to June this year, UK consumers borrowed £5.5 billion. This is almost twice as much as was borrowed in the first three months of the year. IVA help specialists are gearing up for the demand that will surely follow this increase in borrowing.

An IVA can offer a lifeline to over-indebted people, by helping to reduce monthly outgoings, and making debts more affordable. Only unsecured debts can be included on an IVA, such as personal loans, store cards and credit card debt for example.

IVA help needed as debt problems on increase is a post from: The Debt People

Over the last decade, the UK has enjoyed something of a boom. The value of property has increased at record levels, creating enormous pots of wealth for many people, in exchange for no work whatsoever. The word used to describe this new wealth is “equity”, and many people have made the twin mistakes of believing that it will continue to forever increase and that it will last forever.

Neither of these things has turned out to be true. Since the global credit crunch, the value of houses has collapsed, and in a few short months the equity has all but disappeared.

Another investment medium that we all thought was as safe as houses was the stock market, which like property has been on an upward march for the last decade. The collapse of the banks, along with numerous other financial institutions, soon put paid to that, and now many investors have literally lost their shirts.

The net result of all of this is that people are a lot worse off than they were, and raising finance has become a lot more difficult than it was. This has had a knock-on effect in the debt management industry, where previously debt consolidation loans were the first port of call for the overcommitted. Now that this option has vanished, the hard up consumer is left with a Debt Management Plan, or an IVA for higher debt levels.

IVA advice can make the difference between total financial collapse leading to bankruptcy, and finding ones way through the nightmare of debt and emerging still in one piece. Typically an IVA will allow debts to be gathered together into a single, affordable payment and cleared over a set period; usually five years. It is recommended that professional advice is sought before any decisions are made and all IVAs must be nominated and supervised by a qualified Insolvency Practitioner.

IVA help needed as investments fall is a post from: The Debt People

A substantial amount of money is at stake, with the UK banks currently earning more than £2 billion a year from charges and fees levied against their customers accounts.

The news of a delay in the final decision has caused concern amongst IVA advice specialists and debt management providers, who are worried that more consumers could be forced into insolvency as they await the outcome. Many thousands of people have fallen into financial difficulty since the start of the recession and in some cases, bank fees and charges make up a large part of their debt. If it transpires that these fees do not need to be repaid, then it could help indebted consumers avoid insolvency.

The battle between the OFT and the banks has been raging for two years, and around a million refund claims, from bank customers, have been kept in limbo. Some people are worried that the Law Lords decision could still not bring the matter to an end. The matter, or at least some of the issues, could be referred on to the European Court of Justice.

The Lords presided over a 3 day hearing in the House of Lords, where they heard arguments from barristers representing the banks and the OFT. The banks were represented by Jonathan Sumption QC, who squared up against Jonathan Crow QC for the OFT.

The banks argument was that the OFT did not have the power to scrutinise bank charges, regardless of whether they thought that they were fair or not. The OFT countered, saying that they were not only worried about the size of fees, but also the way in which they were charged.

If the decision goes in favour of the OFT, then this could spell major problems for the banks, which could involve having to reduce the fees that they charge in the future. They may also be required to refund bank unfair charges to their customers and with a million eager claimants waiting in the wings, the bill could be astronomical.

Once the matter has been resolved, or if the matter is ever resolved, TCF regulation of the banks will be in the hands of the Financial Services Authority. The FSA will take over formal regulation of the way in which customers are treated by the banks, sometime in November this year.

Refund delay could leave more needing IVA help is a post from: The Debt People