Debt plans missing from data

Published:
29 September 2008
Topic:
News,Money,Debt

As many as 600,000 people in unmanageable debt are not included on official insolvency figures, according to a trade body.

Research by R3, which represents insolvency professionals, showed that around 600,000 people had signed up to debt management plans, which allow borrowers to enter into unofficial agreements with their creditors to repay an affordable amount each month.

R3 has called for the plans to appear on official statistics by the Insolvency Service alongside bankruptcy and individual voluntary arrangements.

It added that in a recent survey it carried out, four times as many people said they were currently in a debt management plan as said they were in an IVA, and twice as many were in one of the plans as said they had been or were currently bankrupt.

The Insolvency Service's figures show that 24,553 people went bankrupt or took out an IVA during the three months to the end of June, although these figures do not reflect the number of people who were already on IVAs or were previously declared bankrupt.

Copyright © PA Business 2008

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