The latest debt statistics released by the Insolvency Service has shown an astonishing rise in IVAs in the last three years.
Figures revealed that while bankruptcies rose by 75% between 2004 and 2006 in England and Wales, IVAs shot up by 312% in the same period.
Despite this increase, lenders proving they are tougher than they look. The rejection rate for proposed IVAs has risen to almost a fifth for the first quarter of 2007 according to accountants KPMG, double the figure for the first three months in 2006.