The SIVA [simple IVA or possible CIVA consumer IVA] would have dealt with this and there was a lot of consultation. The SIVA would have been binding on creditors if the total liabilities were less than about £30,000. They would not have been able to object provided the SIVA was done within whatever guidelines had been agreed. If the debts were between £30k and £75k creditors could have voted only yes or no and could not modify. In addition the required majority for voting would have been reduced to 50% by value as opposed to 75%. If the debts were over £75k there would be no change to the current system with modifications and 75% voting acceptance.
The consultations had been going on for quite some time but unfortunately the advent of the Protocol IVA wrecked the SIVAs. If we are approached for our views we will of course respond and keep the Forum up to date.
It looks then Michael that the matter is being re-visited. Mandleson has been making alot of noise lately about personal debt - perhaps it is his idea.
Mandelson studied greatly the American system and was the driving force behind the Enterprise Act 2002 so you could be right about his input. He believes that the economy needs risktakers and people who try and create wealth and employment should not be penalised by the bankruptcy system if their attempts fail for genuine reasons. I have to agree and early discharge is vital to allow those who have been made bankrupt through no fault of their own. It allows them to go back out and try to rebuild without the bankruptcy restrictions whereas under the old system it was three years before discharge.
I'd like to see a 2 or three tier system, which would allow for those not at fault to re-start and build again, but come down hard on those who blatantly don't have a clue, and merrily go ahead running up debts. My ex was a prime example, (and it isn't a biased view) - he hasn't learnt a thing from the whole process - he's just as bad as before - not a clue about money. Perhaps education would be a good start - so that people would be able to see potential pitfalls and do something earlier.
The best thing I ever did - at last I'm in control!
The first time Skippy I disagree with you - you have learnt your lesson and, as a result, you not only help many others (on here) but are not likely to make the same mistakes again. Just because you lived beyond your means does NOT mean you are a criminal!!
I know you are not - I have a "thing" about IVA people and br people that somehow are implied to be dishonest. I just think that genuine people should be given the second chance asap - your 2 tier system is a case in point.
Must admit tho - I felt mortified when I got my IVA - a real failure, even though I was told that I shouldn't.
However, I've learnt from the whole process - even though it wasnt my mistake to start off with. Maybe I should have cleared out the bank account before I divorced!
The best thing I ever did - at last I'm in control!
