IVAs 'have changed consumer attitudes towards bankruptcy'
An IVA is a useful tool for people in debt who have exhausted all other options, an industry expert has said.
Wayne Harrison, a spokesperson for the Insolvency Practitioners Association (IPA), explained that IVAs had helped change attitudes towards bankruptcy and given people in serious financial difficulty the "opportunity to get their life back on track and start afresh".
He added: "In the past, bankruptcy was viewed as a last resort and the interpretation was that obviously if people were claimed bankrupted then there was impropriety on their behalf.
"People may find themselves in some sort of financial difficulty, through no fault of their own [and] in the past there was a stigma that they had done something wrong.
"Whereas now, both bankruptcy and the IVAs are there to facilitate people who are no longer able to manage their indebtedness and financial affairs."
Recently, the Insolvency Service confirmed that people's attitudes towards debt had shifted in recent years.
It found that just 43 per cent of consumers now thought there was any stigma attached towards bankruptcy or getting an IVA
Source: moneyhighstreet.com
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