The Debt Clinic

Let's Make Your Finances Better

 

Easy Product Advisor

Which solution is right for you?
Our test will give you an unbiased look at which service can help you

Start Test

HSBC, Halifax, RBS and others raise minimum IVA Payment

HSBC, Halifax, RBS and others raise minimum IVA Payment Many of the big banks have decided to raise the minimum payment for IVAs to 40% from 25% of the outstanding debt after the number of IVAs became too large for their liking. According to the Insolvency Service there was a peak of 12,645 IVAs in the last quarter of 2006. Since then there has been a drop in IVAs. In the third quarter of 2007 there were only 10,239, a drop of 4.3% on the same quarter in 2006.

The Debt Mediation Services, a body set up to protect the interests of consumers who have been refused IVAs are lobbying the Financial Ombudsman to investigate and restrict the large lenders’ practices. They claim that more people are not following the route of an IVA because at 40% their debts are still unmanageable. This in effect means that more people are being declared bankrupt and have to live with the stigma and consequences as a result. It will then further have the effect of keeping entrepreneurs who might have failed with a project out of the market and restricting the UK’s Research and Development capabilities.

IVA News posted on 16 November 2007

Have your say - Post a new Comment!

Heading:
Comment:
Anonymous:


Bez Bankrupt for the Second Time
The 2005 Celebrity Big Brother winner has become one of the 15,651 Britons declared bankrupt in the first quarter of 2008.

OFT Warns Over Misleading Bankruptcy Ads
The Office of Fair Trading has warned that companies are targeting IVA-holders with misleading mailings urging debtors to ditch the agreement and opt for bankruptcy.

Company Insolvencies Increase While Personal Insolvency Falls Over Past Year
New Insolvency Service figures reveal a rise in the number of company bankruptcies since 2007, although individual insolvencies are gradually falling.

 
 

© Copyright 2007 - All Rights Reserved - The Debt Clinic - 24 Ardens Way, St Albans, Herts, AL4 9UJ