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Consumers `struggling to cope with mounting debt` Bankruptcy increases by 7% `More Brits applying for personal loans` 70% of Brits `without unsecured loans` Pre-paid cards `more popular as debt rises` IVAs `a real alternative` to bankruptcy Brits `trying to escape credit crunch` by moving abroad West Sussex consumers suffering debt IVA agreements increase Industry body welcomes IVA mailing probe OFT to target bogus IVA companies IVAs can be "helpful" for large debts IVAs - consumers warned about bogus deals Insolvency rates rising IVAs can be "better option" than bankruptcy IVAs are `helpful but should not be taken lightly` IVAs `good to get out of tricky situations` People should "think very carefully" before entering an IVA IVA `saved businessman`s house` Govt unveils new IVA code

Simplified IVA `could be good for debtors`

20/06/2007

Proposals unveiled recently by the government`s Insolvency Service, which make the process of applying for an individual voluntary arrangement (IVA) simpler, could be good for people with debt, it has been suggested.

Current regulations stipulate that people must obtain agreement from three-quarters of their lenders to enter into an IVA, but these recent suggestions lower the proportion to 50 per cent.

In addition, a standard application process and contract will be brought into effect to make the process faster.

These changes are part of a group of proposals put forth by a working committee which was set up in 2005 to streamline the IVA process.

Earlier this month, Eric Leenders of the British Bankers` Association told BBC Radio Five Live about some of the changes to IVAs.

"[The changes] would include … process efficiencies and certainly would help consumers because of course we`d be looking to far more simplified paperwork which would be much more accessible … for them," he said.

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