Do 25% of IVAs really fail?

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jonathah
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by jonathah » Thu Dec 28, 2017 12:22 am
I read on the excellent Debt Camel blog that 25% of IVAs fail, Can't find any statistics, wonder what anyone else thought/knew.
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Foggy
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by Foggy » Thu Dec 28, 2017 9:38 am
I have not had sight of official failure statistics for a few years --- If I find them it is usually accidental as they do not routinely publish failure rates as far as I know. As I recvall the percentage does seem rather high, but, as with modt things statistical, you have to be wary. The last figures I saw included as a fail proposed IVA's rejected at the outset (so, technically, should never have made the list).
Then you need to drill down for the reasons for failure: Budget too tight at the start (we get a few mentions of this on the forum, but not many). Not understanding your responsibilities under the agreed terms and falling foul of them (we get a few of those too). Change in circumstances and an unhelpful IP ( we get too many of those!). And, of course, we get the tried to hide the Rembrant, took out more credit, refusal to pay PPI / extra income / grannies inheritance.
The over-riding reason we see on here (and we are only a fraction of those in insolvency solutions) is lack of communication / misunderstanding and, as I have said many times, the debtors have no access to mediation other than to take advice from the likes of here and Debt Camel and fighting their own corner --- even then, they are over the proverbial barrel.
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