Individual voluntary arrangements (IVA) have been a "wonderful success story", an expert has commented.

Spokesman for the UK Insolvency Helpline Ian Richards said the IVA, which the government created in 1986, has been "fantastic".

However, he said in the future, there is likely to be an increase in debt management, which may have been looked down on in the past as a route out of debt.

"The main point is the IVA is a fantastic way out of debt, but there are other ways that are just as good to get out of debt," Mr Richards suggested.

Government statistics reveal that during the second quarter of 2007, nearly 10,700 IVAs were taken out while almost 16,260 bankruptcies were filed.

IVAs were created to provide an alternative to bankruptcy for individuals struggling with problem debt.

They can allow the debtor to make affordable monthly repayments for a set period of time, after which any remaining sum owed is written off.