www.iva.co.uk

Have not posted for a while so I hope everyone is keeping well. I was reading a artical in a paper this morning which was saying that more and more IVAs are been rejected due to creditors tougher demands. I was wondering if this was the case or with food/gas ect prices going up those in IVAs or people who are trying to have them found they had less disposable income which was causing IVAs to fail or be rejected ? Is there a greater amount of IVAs been rejected now compared to a year ago ?

If there is a duck hunting season in IVA then it is now.But I think the number of personal insolvency is down year on year but many peple are in DMPs that will roll into IVAs in a matter of time this year.

Creditors are losing out on IVA returns in a Crunch/Recession time, and with Commodity prices going up,and with more variation meetings, they can't extract that extra return from pay rises as they could in the past.It still beats the returns in BR but that margin is less now.

What is more of a headline is businesss insolvency is going to be going up as cash flow problems means businesses are diping into lending facilities to 1992 Recession levels! Banks are not giving much leeway to extending those facilities and defaults notices are served with intent to have all their money back

5 Private Boarding schools have so far gone into administration as the banks have pulled their line of credit ...thats a real headline.

Creditors are definately getting tougher on their acceptance of IVAs and members of my profession are continually having to adapt to changing criteria each week. When the IVA protocol was introduced in February this year, it was hoped to standardise a lot of the issues relating to IVAs, but it seems to me that we have more differing opinions now than ever. Things can only get better so they say.

This is certainly a very challenging time as regards approvals. I am not sure that rejections are significantly higher, but maybe we are having to work harder and smarter to get those approvals.

Regards.

As a layman, I would have thought that in the current climate, the banks are looking to "bury bad news" and would be more open to writing off debt. Either that or they must be playing a bit of brinksmanship here, hoping that rejected IVA;s will then go onto DMP's and not take the BR route.

I think that the number of people going BR will rise significantly over the next year or so. Now the stigma is less and the fact that it's a fairly straight forward process, i can honestly see this happening. A DMP may be a lifelong commitment for a lot of people, and the option getting on the housing ladder etc etc, will be reduced, those able to have a fresh start, will be able to inject new business by way of mortgages etc, my i am talking rubbish,hahahha. I'm sure some of you know what i'm going on about.

Call me cynical but with such a dire economic climate surely it is in the economies sake to make BR simpler (as the government has done) as it removes debt from people which thus allows them more disposable income to put back into the economy?

From my own poing of view having recently had my F&F offer accepted I now have more disposable income than I have ever done.

Debbie