UK Insolvency Helpline To Receive Extra Funding
The UK Insolvency helpline will be receiving a grant that will allow it to expand its services during the recession. The helpline is the biggest debt charity in the United Kingdom and has found itself in the spotlight in the last few years, as the recession has caused many individuals and businesses to become insolvent and look for ways out of their spiralling debt.
The helpline will be expanding its operation from early next year to help more people who call up asking for advice. The team specialise in a relative new form of debt relief called an Individual Voluntary Agreement (IVA) which can be a fresh start for people facing debts of over £15,000 and no easy way to pay back the money.
The IVA has come under fire in recent years for being seen as a ‘get out clause’ for people who have been reckless with money, and a softer alternative to full bankruptcy. However, an IVA is still a major part of beginning to rebuild the finances of many Britons, and the helpline is able to provide individually tailored and independent advice.
The government is concerned about the large amount of companies mis-selling the IVA scheme and even charging large fees on top of existing debt to advise and arrange the specifics of setting up an IVA.
Head of the IVA assessment team, Akim Shazah said: “Support from independent IVA advisors and early intervention is really important. I am delighted that our IVA team has got this extra funding and welcome this new expanded IVA helpline service and am reassured that people who find themselves in difficulty can ring someone up to discuss their issues through”
In related news, the helpline has recently reported a 30% rise in calls to its specialised helpline for corporate insolvency, signalling a large increase in company debt which can often be linked to or influenced by personal debt.