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Insolvency firms tackle IVA concerns
08/03/2006 13:10:00
An individual voluntary arrangement (IVA) working party has been set up to deal with concerns within the insolvency industry surrounding the increase in demand for IVAs.
In February, KPMG held an insolvency practitioners' conference where many organisations admitted concerns that they would struggle to deal with the huge volume of paper work generated by the 117 per cent increase in IVAs in 2005.
Steve Treharne, head of personal insolvency at KPMG, said: "This causes major problems for creditors in the processing of IVAs.
"The same proposal quite often can be sent out as many as six times to creditors who may have customers with multiple accounts and the insolvency practitioner firms have to pay for the paper, post and packaging, increasing unnecessary costs."
Mr Treharne added that a second forum would be organised for later in the year to ensure that the concerns raised would not lose momentum.
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