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BankruptcyNews
Junior Member
358 Posts |
 Posted - 07 August 2007 : 10:16:57
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Debtors face yet more worry, as banks impose unrealistic hurdle rates on IVAs – says insolvency trade body
Individuals struggling with debt have fewer options to get themselves out of trouble, as certain creditors impose unrealistic acceptance rates for individual voluntary arrangements (IVAs). Today’s Insolvency Service statistics reveal a 15% drop in the number of IVAs taken out in the second quarter of 2007. R3 – The Association of Business Recovery Professionals, says that the cause of this drop in the number of IVAs is a result of impossible hurdle rates set by creditors, rather than a decreased demand for them among debtors
Nick O’ Reilly, Vice-President of R3 said:
“The hurdle rates that some creditors are now imposing are in nobody’s interests. The people who will suffer as a result are the debtors, who in many cases will be denied the most suitable technique for of managing their debt, and which could help them work their way out of debt. R3 believe that in the correct circumstances, an IVA can prove to be beneficial for both creditor and debtor.”
R3 is currently working closely with The Insolvency Service and the British Bankers Association, and other key stakeholders on the IVA debate, to draw up guidelines for IVA providers on various aspects of the IVA process, including monitoring, compliance, advertising and fees. Graham Rumney, COO at R3, has chaired a sub group of IVA providers, creditors and intermediaries, which discussed issues surrounding the promotion and operation of the IVA industry. These meetings feed into the work on IVAs being jointly organised by the Insolvency Service and the British Bankers Association.
Source: creditman.co.uk
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Edited by - BankruptcyNews on 07 August 2007 10:18:34 |
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Debtors face yet more worry
