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The Insolvency service has now published its report into the impact of the Individual Voluntary Arrangement, (IVA) protocol, introduced in February 2008 as a voluntary code of conduct to facilitate the efficient handling of straightforward consumer IVAs.
The report looks at how well IVAs have been working since the protocol was established paying particular attention to
The report draws attention to the high levels of modifications that are requested by creditors before an IVA can be agreed. IVA providers reported dissatisfaction about the limited impact of the protocol in this respect. In total, 97 per cent of IVAs were subject to a modification before being accepted and modification requests relate to three main areas; fees, contributions and terms of the proposals.
As part of the review, 2500 questionnaires were sent to individuals who had gone through the IVA process and had an IVA approved during the period 1 April 2008 to 31 March 2009.
80 per cent of those who had an IVA accepted during this time had been through one or more alternative debt remedies before embarking on an IVA and 71 per cent had been advised formally on alternative forms of debt relief available to them.
View the full report 'Review of the impact of the IVA protocol'.
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The report looks at how well IVAs have been working since the protocol was established paying particular attention to
- Compliance rate amongst IVA providers;
- Creditors opinions of the protocol; and
- Impact of the protocol on access to IVAs and levels of fees charged.
The report draws attention to the high levels of modifications that are requested by creditors before an IVA can be agreed. IVA providers reported dissatisfaction about the limited impact of the protocol in this respect. In total, 97 per cent of IVAs were subject to a modification before being accepted and modification requests relate to three main areas; fees, contributions and terms of the proposals.
As part of the review, 2500 questionnaires were sent to individuals who had gone through the IVA process and had an IVA approved during the period 1 April 2008 to 31 March 2009.
80 per cent of those who had an IVA accepted during this time had been through one or more alternative debt remedies before embarking on an IVA and 71 per cent had been advised formally on alternative forms of debt relief available to them.
View the full report 'Review of the impact of the IVA protocol'.
More...
