IVA numbers drop drastically in 2007
Published On 2 February 2008
Fewer people sought IVAs to manage their debt in the final months of 2007, a new study has shown.The Insolvency Service released data that indicated that there were 9,188 IVAs sought in the fourth quarter of 2007, down 8.3 per cent on the previous three-month period.
Over the whole of 2007, 42,165 IVAs were granted, representing a drop of 4.9 per cent on 2006's figure.
Between 1997 and 2006 there was a consistent rise in the number of IVAs issued, but 2007 saw four consecutive quarters where demand for these debt management tools declined.
Recently, a new voluntary standard of conduct was agreed between the providers of IVAs.
British Bankers' Association (BBA) chief executive, Angela Knight, commented: "People in debt and their creditors need to know that when an IVA is proposed it is the most appropriate solution.
"The BBA, the Insolvency Service and the participating IVA providers are united in support for this agreement, which should provide customers with the reassurances they need in order to make the right choice for their financial futures."
