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Grant Thornton supports government plans
07/03/2006 15:21:00
Financial advisory firm Grant Thornton has supported new government plans to simplify debt maintenance plans.
Proposals by a working party to create Simple Individual Voluntary Arrangements (SIVAs) to speed up the process of applying for an IVA are likely to become law in autumn next year.
Mark Allen, partner at Grant Thornton, said: "As a member of the Insolvency Service's working party, I welcome the consultation responses which will ensure that both the creditor and the consumer get a fair deal."
Debtors instigate IVAs and are a voluntary agreement between the debtor and any creditors to repay debts over a certain period, being seen as less restrictive than bankruptcy and avoiding its stigma.
Existing IVAs require the agreement of 75 per cent of creditors to be put in place, but the new SIVA will only require 50.1 per cent for debts under £75,000.
"As UK personal insolvencies reach epic proportions, the simplification of IVAs will doubtless be a welcome relief for many who find themselves burdened with unmanageable and seemingly insurmountable debts," concluded Mr Allen.
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