Oct 12 2007
Individual Voluntary Arrangements Grow Tougher
Firms that offer IVAs in England and Scotland are considering withdrawing services that help citizens set up IVAs. Financial services companies are increasingly unhappy about paying upfront fees and also want to restrict IVAs from becoming an easy option for debt-laden consumers. For creditors, an IVA can mean only recovering 30% of outstanding debt so they have an interest in ensuring that only really insolvent consumers can access them.
As personal debt continues to rise along with personal bankruptcy, it will be interesting to see how this market continues to shake out.
