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Screensize: 640 x 480 800 x 600 1024 x 768 1280 x 1024 UserName: Password: Format Mode: Basic  Help  Prompt  Format: Font Andale Mono Arial Arial Black Book Antiqua Century Gothic Comic Sans MS Courier New Georgia Impact Lucida Console Script MT Bold Stencil Tahoma Times New Roman Trebuchet MS Verdana   Size 1 2 3 4 5 6   Color Black Red Yellow Pink Green Orange Purple Blue Beige Brown Teal Navy Maroon LimeGreen Message: * HTML is OFF * Forum Code is ON Smilies [quote][i]Originally posted by BankruptcyNews[/i] [br]IVA firms threaten to sue banks High Street lenders have been accused of preventing thousands of over-stretched families accessing ' bankruptcy lite' debt settlements, leading to a potential explosion in bankruptcies. The Debt Resolution Forum, which represents 28 firms such as ClearDebt and Accuma, said lenders are imposing artificial barriers and hurdles on so-called individual voluntary arrangements, which offer struggling borrowers a way of avoiding bankruptcy. The industry body said it is considering a legal challenge to changes in fees demanded by the Insolvency Exchange - which represents lenders such as Halifax/Bank of Scotland group HBOS - as they could make many IVAs unviable and drive advisors out of business. 'Unless an effective new deal is reached, an explosion in bankruptcies is likely,' said Chris Holmes, chairman of the DRF. A government agency said last week it is 'very concerned-about the fees overhaul-In a letter to industry players, the Insolvency Service, which is part of the Department for Business and Enterprise, said it had found that many creditors are ' effectively refusing to vote in favour of IVAs where the fee is above a certain level'. 'The longer-term effect could be to push more people into bankruptcy, where creditors would get an even lower return,' the agency warned. Banks have attacked IVA providers for aggressively selling the 'bankruptcy lite' settlements as a relatively painless way of wriggling out of their obligations. An HBOS spokesman said: 'IVAs have been an established feature in the UK for many years. They are part of the banking landscape and that's not going to change. 'We believe the market is maturing and we are now entering a phase where the right fee levels are being put in place.' Source: thisismoney.co.uk See my Blogs: http://bankruptcynews.blogs.bankruptcyhelp.org.uk [/quote]   Check here to include your profile signature.