IVA Articles
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IVA : Debt Advice Companies Suffer Profits Blow.
Two of the largest debt advice companies in the UK are feeling the effects of the tightening restrictions that creditors are placing on Individual Voluntary Arrangements (IVAs).
Accuma have seen their share price fall by half in recent weeks, as conversions within their lucrative Individual Voluntary Arrangements (IVAs) market have been affected by opposition from creditors.
In a statement it said that market expectations may not be met due to the increased resistance from a small minority of creditors.
Without the support of its creditors, an Individual Voluntary Arrangement will not pass its Creditors Meeting, and therefore the company will not benefit from fees it is able to charge the creditors for their in-house Insolvency Practitioner supervising, or managing, the Individual Voluntary Arrangement (IVA) over its term.
Debt Free Direct, one of Accuma's debt advice competitors, also warned that there would be an impact on its projected profits.
An Individual Voluntary Arrangement (IVA) is a debt solution designed to assist seriously indebted people reach an agreement with their creditors whilst allowing them to avoid declaring themselves bankrupt.
An Individual Voluntary Arrangement (IVA) does this by offering reduced payments over a fixed time period. In exchange the creditors agree to write off any debt that remains unpaid at the end of the agreement.
However, due to a growing uneasiness within the creditors ranks, caused by the upsurge of some debt companies using inaccurate and exaggerated advertising to swell the numbers of applications for Individual Voluntary Arrangements (IVAs), creditors have begun to raise the criteria required before they will consider an Individual Voluntary Arrangement (IVA) as their preferred option.
The knock on effect of this move has caused hundreds of previously acceptable Individual Voluntary Arrangement (IVA) applications to fail their creditors meeting, or be withdrawn at the last minute.
Unfortunately, the people finding themselves in this situation are then left with the choice of a Debt Management Programme, which will generally be less suitable to the client, or even faced with the prospects of having to declare themselves bankrupt.
If you would like to discuss these changes to the Individual Voluntary Arrangement (IVA) criteria with an Individual Voluntary Arrangement (IVA) adviser, then call our IVA line at www.myIVA-Adviser.com on 0800 088 7503.
If you are considering using an Individual Voluntary Arrangement (IVA) as your preferred debt solution, then call 0800 088 7503. We are keeping a detailed record of all the minimum requirements of each of your creditors, and will be able to inform you as to whether your potential Individual Voluntary Arrangement (IVA) plans will be affected.
