Latest Debt News
Simple IVA a simple solution
06/03/2006 14:22:00
Suggestions that the government will introduce simplifications to the Individual Voluntary Arrangement (IVA) process has been well received by debt advice group The Debt Counsellors.
The Simple IVA (SIVA) will make the IVA process considerably easier and will encourage more people in debt to follow this path rather than bankruptcy.
John Porter, a senior counsellor with The Debt Counsellors, said: "With personal debt higher than ever in the UK and bankruptcies at record levels, the situation needs addressing.
"The IVA is the best solution to insolvency for many people and preferable to bankruptcy in a lot of cases, so simplifying the process and broadening its suitability can only be a good thing."
Among the changes that are likely to be given the green light is the number of creditors needed to agree to the arrangement for debts under £25,000, which will fall from 75 per cent to 51 per cent.
The IVA procedure will also be made more fluid by introducing a standard contract and application process.
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