The perceived logic seems to be to the contrary, reproduced, again, from elsewhere:
"Mark Onyett of TDX, said that 2008 was likely to be a boom year for IVA’s due to the squeeze in the global credit market causing lenders to turn away customers who previously would have borrowed to pay off current debts. He said that as the number of problem debts ballooned, up to 600,000 people could be forced to become bankrupt or enter into an IVA.
“For the vast majority of people this year, refinancing and remortgaging won’t be available as a solution,” he said. “Their choice will be narrowed to bankruptcy, a debt-management plan or an IVA. You could see a doubling of IVAs.”
Now, it would be inappropriate to comment on that, but it is fairly safe to say that people who in previous times may have used equity to clear debts will now not be in a position to do so. The choice will then boil down to more unsecured borrowings to keep things afloat, or an increase in the use of the various debt solutions. As bankruptcy generally has a lesser return than IVA or DMP then it is also fair to assume that the market for those products may expand greatly.
Ouch.
Last edited by
size5 on Tue Apr 29, 2008 3:14 pm, edited 1 time in total.