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| T O P I C R E V I E W |
| debtinfo |
Posted - 04 December 2009 : 13:15:02
Official failure rates for IVA's Released
Individual Voluntary Arrangements (IVAs) registered in England and Wales
Status as at : August 2009
COMPLETED ONGOING TERMINATED TOTAL1
YEAR Number of cases % of Total Number of cases % of Total Number of cases % of Total Number of cases
1987 313 88.9% 0 0.0% 39 11.1% 352
1988 620 82.9% 2 0.3% 126 16.8% 748
1989 929 77.0% 0 0.0% 278 23.0% 1,207
1990 1,376 71.7% 1 0.1% 542 28.2% 1,919
1991 2,125 69.5% 0 0.0% 933 30.5% 3,058
1992 3,324 70.9% 1 0.0% 1,361 29.0% 4,686
1993 3,878 68.9% 3 0.1% 1,751 31.1% 5,632
1994 3,438 67.7% 1 0.0% 1,640 32.3% 5,079
1995 2,915 66.7% 1 0.0% 1,454 33.3% 4,370
1996 3,082 69.0% 1 0.0% 1,385 31.0% 4,468
1997 3,089 68.5% 2 0.0% 1,416 31.4% 4,507
1998 3,376 69.0% 9 0.2% 1,508 30.8% 4,893
1999 5,106 71.1% 5 0.1% 2,071 28.8% 7,182
2000 5,634 70.9% 18 0.2% 2,292 28.9% 7,944
2001 4,499 71.8% 21 0.3% 1,749 27.9% 6,269
2002 4,328 68.9% 89 1.4% 1,864 29.7% 6,281
2003 4,572 60.4% 574 7.6% 2,427 32.0% 7,573
2004 3,942 36.8% 3,271 30.5% 3,512 32.7% 10,725
2005 3,797 18.7% 10,162 50.2% 6,296 31.1% 20,255
2006 4,042 9.2% 26,960 61.1% 13,098 29.7% 44,100
2007 1,954 4.7% 29,729 70.8% 10,280 24.5% 41,963
2008 632 1.6% 34,059 87.5% 4,229 10.9% 38,920
Notes for statistical data on IVA outcomes.
An Individual Voluntary Arrangement (IVA) is an alternative formal debt
solution to bankruptcy and was established by Part VIII of the Insolvency Act
1986. It is a legally binding agreement between a debtor and his creditors
about how the debts will be paid (either in full or in part). An application is
made to court and an insolvency practitioner has to be appointed to
supervise the arrangement. More detail about IVAs is available here:
http://www.insolvency.gov.uk/bankruptcy/alternativestobankruptcy.htm
Definition of terms
Completion:-
Where the supervisor has issued a certificate (“the completion certificate”)
stating that the debtor has complied with their obligations under the
arrangement.
Termination (Failed):-
Where the supervisor has issued a certificate (“Certificate of Termination”)
ending the arrangement because of the debtor’s failure to keep to the terms of
the arrangement.
Ongoing (Current):-
Where the arrangement is continuing.
Revoked or suspended:-
Where an application to court has been made to challenge the decision of a meeting approving an IVA, the court may revoke or suspend the approval or call for further meetings to be held. Notification of such action should be forwarded to the Secretary of State within 7 days of the making of the order.
Background and explanation of data
The Insolvency Service has decided to implement a recommendation of the Insolvency
Practices Council (IPC) to publish annual statistics showing completion,
failure and ongoing rates of IVAs set up since their introduction. It is anticipated that
these statistics will be updated quarterly, but a publication schedule is still to be agreed.
The total annual figures here are not the same as those published in the official quarterly
Insolvency Statistical Press Release.
The duration of an IVA may vary, although it is common for an arrangement to
be for a 5-year period. One factor that therefore needs to be taken into
account when interpreting the data for those IVAs registered in the later years
is that there will be fewer completions, as the majority of these arrangements
will not have reached their full term.
Additional factors that should be considered, particularly for the data on IVA
registrations for the later years, are that it is more likely that an IVA will fail
within the first year of an arrangement; and the upward trend in total IVA numbers.
The interpretation of trends in failure rates should, therefore, be treated with caution.
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| 7 L A T E S T R E P L I E S (Newest First) |
| debtinfo |
Posted - 04 December 2009 : 21:46:51
I quite agree paul, there is obviously a vast difference between providers. It would also be better if they collected data on the cause, ie there are many cases where a failure is unavoidable because of a change in circumstances and some that were not the right option in the first place.
of course, the ones with bad rates dont really come on open forums to offer free advice to people |
| Reviva UK |
Posted - 04 December 2009 : 21:37:05
I think it is worth mentioning that these figures are the industry average.
Unfortunately the Insolvency Service have not seen fit to disclose information on an IVA provider basis. They have the information. In addition I am aware of many people who don't fit into the categories and are therefore classed as "ongoing" but infact their IVA's have failed and they haven't made payments for over 12 months but still show as the IVA being active.
If the figures were made available you would clearly see that the success of an IVA is directly proportional to the input of the Insolvency Practitioner and experience of the team supporting them.
i.e. smaller bespoke companies are much more likely to have a high success rate than a large "IVA Factory".
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
| Skippy |
Posted - 04 December 2009 : 20:33:03
Rather than being put off by statistics like this, I would recommend that anyone trying to decide their best course of action has a look on www.iva.com and speaks to 2 or 3 professionals.
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
28 IPA payments made, 8 to go - in single figures! |
| averagejoegoesbankrupt |
Posted - 04 December 2009 : 20:02:44
Thanks DebtInfo, really sobering to see the failure rate not much lower than 1 in 3.
Average Joe
http://averagejoegoesbankrupt.blogs.bankruptcyhelp.org.uk/ |
| debtinfo |
Posted - 04 December 2009 : 16:19:02
many of the people here are either considering which way to go or are heading for banruptcy due to a failed IVA. Feel free to pop it up on the IVA board as well, usefull information |
| Melanie.n |
Posted - 04 December 2009 : 16:11:50
Don't see why this has been posted on the bankruptcy forum?
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
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| debtinfo |
Posted - 04 December 2009 : 13:16:15
didnt copy very well here is the link
http://www.insolvency.gov.uk/otherinformation/statistics/IVAs/IVA%20Completion%20Failure%20Tables_MMS.xls |
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