IVAs – SIVA Goes to Ground
IVAs – SIVA goes to ground
The SIVA (Simple IVA) will not go ahead following a shock announcement by the Insolvency service last week.
Chief executive of the Insolvency Practitioners Association (IPA), David Kerr, said his members are disappointed at the Government’s change of heart.
Mr Kerr said: “The SIVA scheme would have made it more difficult for creditors to defeat reasonable proposals for repayment by setting arbitrary minimum levels of return which take no account of debtors’ circumstances and ability to pay.
“Certain creditors are still insisting on receiving more than debtors can afford to pay in some cases, resulting in proposals being rejected even where the creditor represents only 25 per cent of the debts. That can be in nobody’s interest.”
Mark Onyett, Chief Executive of TDX Group said, “In its proposed form the SIVA was not going to achieve its original objectives of driving operating efficiencies across the insolvency industry. The withdrawal of the SIVA allows the industry to focus on the benefits of the Protocol-compliant IVA1, which is still only being used in around half of cases. Greater consistency in proposal formats and increased use of electronic media will enable lower operating costs and speedier decision-making for troubled consumers who find themselves unable to cope with their debts.”
Mr Onyett adds: “The Insolvency Service and the British Banker’s Association have been instrumental in bringing the industry closer together and TDX Group continues to endorse their progressive approach through the ongoing development of the IVA Protocol.”
Sources & Further Information:
http://www.timesonline.co.uk/tol/money/consumer_affairs/article5182378.ece
http://www.creditman.biz/uk/members/news-view.asp?newsviewID=9210
http://www.debtadvisersdirect.co.uk/iva-solutions/iva-solutions.asp
