If you are struggling with debt, then searching the internet is likely to take you to a firm of insolvency practitioners who specialise in putting in place individual voluntary arrangement (IVA). An IVA is a legally binding agreement between you and your creditors to pay debt over time.
Depending on your circumstances an IVA might not always be the most suitable way to deal with debt and may leave you struggling and in debt for longer. So it is important that you seek and receive advice on other options such as breathing space, debt management plans, bankruptcy and debt relief orders.
The Insolvency Service is working with the industry’s regulators on ways to improve support for people in debt to make sure that they receive the best advice and is investigating measures around advertising to make sure that more information is presented to individuals before they sign up to an IVA.
Whilst an IVA can work well for many, please make sure that you understand all options, before signing up to one and seek advice from insolvency practitioners who do not just specialise in IVAs, or one of the many debt charities.
The research, which has been published today, looked at 310 randomly selected IVAs which had been both registered and terminated between 2021 and 2023, and found that 60% showed evidence of poor practice in the early stages.
https://www.gov.uk/government/news/research-shows-concerning-level-of-poor-practice-in-the-iva-market?_bhlid=00dc7bfcaa458152e9982dc43beb58976de932ea