DRF pans SIVA withdrawal
Debt Resolution Forum rejects the Insolvency Service claim that current IVA guidance rules out the need for simplified IVAs
The Debt Resolution Forum has condemned the government’s announcement to
scrap simplified IVAs.
David Mond, chairman of the body, which represents businesses handling the
majority of IVAs and debt management plans in the UK said:
‘It is impossible to understand why, just at the moment when more people need
more help with debt than ever before, the government should decide to destroy
years of work by the debt resolution sector, money advice charities and lenders
by scrapping the introduction of the SIVA.’
In order to set up a SIVA only 50% of creditors by value needed to endorse
it, compared to 75% in regular IVAs. There were also lower costs for the debtor
associated with the new proposals.
However, the Insolvency Service withdrew proposals for the legislation
yesterday because it believes the IVA Protocol introduced earlier this year was
adequate, sparking anger from the IVA community.
‘The IVA Protocol is of great benefit to all, but especially the banks in
that it has driven down IVA fees,’ said Mond.
‘However, it has not yet achieved its other main objective. Banks and credit
card companies are still frustrating people’s efforts to use their best efforts
to repay as much debt as they can afford.’
Further reading:
Insolvency
Service drops SIVA plans
