Attitudes towards insolvency 'changing'
Attitudes in the UK are changing, meaning that there is less stigma attached to a person declaring themselves bankrupt or applying for an IVA, an industry expert has said.
Since laws changed in 2004, it has become easier for people to declare themselves bankrupt and Paul White, a consultant for Belgravia Insurance Consultants, said that attitudes are now beginning to shift.
"We're moving towards a more US approach where people say: 'Well that's unlucky' and give you another try," Mr White explained.
In addition, more people have started to use IVAs when faced with serious debt problems. Mr White added: "There has been an increase in IVAs, even such that it's not actually done face-to-face anymore.
"If it can be done remotely then it's really more of a streamlined process rather than someone sitting down face-to-face.
"There is more of this remote advice going on, so cases like these are being treated more casually."
Figures from the Insolvency Service show that there were 16,842 individual bankruptcies and 13,233 IVAs in the first quarter of the year. This means that the number of IVAs in the UK increased by 47.6 per cent when compared to the same quarter last year.
Source: moneyhighstreet.com
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