New code for IVAs agreed
Published On 31 January 2008
The organisers and bodies involved in managing and agreeing IVAs have developed a voluntary code of conduct.Under the new voluntary rules, the process by which people arrange the debt management tool will be made more transparent. The new guidelines include standard terms and conditions.
Overall, it is hoped that the new system will provide greater reassurance for creditors and debtors that the best option has been presented.
Patrick McFadden, minister of state for employment relations and postal affairs, commented: "The Insolvency Service has facilitated a process which has successfully produced a voluntary code for IVAs to reflect the changing needs of the market.
"It will provide greater transparency for creditors and debtors alike by using standard clauses and a consistent format. [The] protocol is a significant achievement for everyone involved."
The latest figures from the Insolvency Service indicated that 10,239 IVAs were sought in the third quarter of 2007 - 4.3 per cent fewer than in the previous three-month period.
