Insolvency firm ClearDebt today reported widening losses, but said there was 'light at the end of the tunnel' for the beleaguered industry.
Losses for the year to 30 June hit £1m against £698,000 in the 18 months to June 2006 as banks clamped down on individual voluntary arrangements (IVAs).
Insolvency firms have been forced to alter the structure of IVAs, which are taken on by people who cannot manage their debt repayments but want to avoid bankruptcy.
Shares in the sector crashed yesterday after a warning by Debtmatters. ClearDebt today said that although the number of IVAs it issued rose from 179 to 204 last year, the total fell from 74 in the first quarter to 31 in the last.
Chief executive David Mond said: 'Initial impressive success has been pulled back by the turmoil created by the major creditors' attitude to many IVA providers and has effectively capped the industry's capabilities.
'However, we believe there is light at the end of the tunnel.'
ClearDebt pain as IVAs are hit
Posted - 05 October 2007 : 10:01:13
