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Proposal could see number of IVAs soar

The number of individual voluntary agreements is set to soar next year under government plans to introduce Simple IVAs.

IVAs are seen as an alternative to bankruptcy whereby debtors agree to pay a proportion of their debts to creditors. Typically, this is at least 25%, with an agreed payment every month.

But banks have just reported bad debts of billions, with 2.6bn being attributed directly to customers. This has been blamed on relaxed bankruptcy laws and the rise in IVAs.

Measures next year could make the process of getting an IVA much simpler, with the procedure eliminating the modification process and the need for a physical meeting. Instead, creditors will vote to accept or reject proposals by a date set by the nominee.

A spokesperson for PricewaterhouseCoopers says: “The popularity of IVAs is likely to be boosted by the introduction of SIVAs, which are expected in 2007. These are aimed at cases in which debts are not disputed, contingent or otherwise undefined and are under 75,000 in total.”

IVAs are now at three times the level they were in 2002 and are likely to increase further over the next couple of years. By the end of 2007, they will be as common as bankruptcies if this trend continues.


PMPA members increase business with GMAC-RFC

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Statistics that mean less than facts

They say bad news comes in threes so after a surprise base rate rise and the press awash with stories around the explosion in individual voluntary arrangements, what are we to expect next? Affordability crisis as personal debt soars, perhaps?

Choose life…

Sarah Scott  – Marketing Consultant, Royal London  This month sees the return of Renton, Sickboy, Begbie and Spud in the sequel to the film Trainspotting. Just over 20 years later, we return to see exactly how life treated the characters whose lifestyle was less than ideal back in 1996. Did they choose a job, choose […]


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