|
Next
Previous
Insolvency Practitioners and lenders are becoming increasingly concerned about managing the huge growth in the number of Individual Voluntary Arrangements (IVAs),
which increased by 117% in 2005.
Steve Treharne, Head of Personal Insolvency at KPMG commented: “As the number of IVA proposals continues to rise dramatically, a huge volume of paper work is produced. This causes major problems for creditors in the processing of IVAs.
"The same proposal quite often can be sent out as many as 6 times to creditors who may have customers with multiple accounts and the Insolvency Practitioner firms have to pay for the paper, post and packaging, increasing unnecessary costs. Such duplication seems wholly unnecessary and ways to streamline the process need to be found.
"However this relies on the understanding from both the lenders and Insolvency Practitioners on how this process can be best managed.”
Many Insolvency Practitioners are expressing concern at the number of modifications proposed by creditors or their representatives to the debtor’s original offer, especially as some of the modifications appeared to contradict those proposed by other creditors.
In addition, uncertainty regarding the way in which the debtor’s interest in his property should be addressed and the lack of votes received in time for the creditors’ meeting made up their top three concerns regarding the production and processing of IVAs.
Treharne added: “Feedback following the forum has been extremely positive from
all parties concerned. We have noticed already that both creditors and
Insolvency Practitioners have a better understanding of the issues and action
points are being implemented.
"It is good to see that the idea of a Simple Individual Voluntary Arrangement has been broadly accepted by the Industry. This revised procedure will help to cut out much of the bureaucracy that bedevils the current process and will make the IVA
more accessible to those struggling with debt.
"It is good news for the creditors too as the suggested reduction in paperwork
will streamline the process and take out many of the frustrations that the
present over bureaucratic system causes.”
Source:
Getting Paid
|
