UK consumers with serious debt problems considering an IVA or Individual Voluntary Arrangement, might well have to take personal bankruptcy instead.
Even though it's expected that more people than ever will send in applications for an IVA this year, more of those than ever will be rejected as Banks get tough against the procedure. Once turned down, these consumers will have no other choice but to pursue personal bankruptcy.
A spokesperson for Credit Action stated, "There is a slight change in regulation which means that they are harder to come by and the banks are also much less willing to grant IVAs than they were a couple of years ago."
If you do have severe debt problems then make sure you sit down and review your finances extensively so you know exactly where you stand. If you can avoid and IVA or bankruptcy then you'll be in much better financial shape when you are eventually debt free.