Your points are very relevant and topical. The simple fact is that, although the insolvency statistics are greatly inreased, this is directly reflected in a sharp increase in bank unsecured lending. There are irresponsible borrowing and lending practices out there, and some people do think that obtaining and using credit is their automatic right without realsing the cost of borrowing or their ability to pay the money back. Other people fall victim to insolvencies just because something unexpected happens to them such as divorce, job loss, death or illness.
At present the banks are having a beef about the way IVA's are advertised and blaming insolvency practitioners for profiteeringn from this. I agree that some of the solicitation of consumers is inappropriate, and was delighted to hear that steps are being taken to regulate this.
There is nothing wrong with the IVA as a method of debt repayment. They do work for the majority of people and, as Nevernding says, give more money back to the banking system than bankruptcies.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at:
http://melaniegiles.blogs.iva.co.uk
