The latest figures show yet another record high for individual insolvencies, with over 26,000 people entering insolvency in the second quarter of 2006 - the highest figureon record, and a leap of 66% compared to the same period last year.

The number of bankruptcies actually fell, with just under 15,000 people taking this route out of debt, a drop of 32.5%. However, individual voluntary arrangements (IVAs) rose by a staggering 153% to 11,105.

IVAs are a legally binding agreement between a debtor and their creditors, where a portion of debt is repaid over a period of 5 years in return for an end to recovery proceedings.

The increase in popularity of IVAs is being attributed to a greater awareness of the benefits they can bring to people in serious debt, along with heavy marketing of the scheme by debt advisors and insolvency practitioners who earn commissions each time they guide a client through the IVA process.

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