New IVAs Legislation: Will It Reduce Bankruptcies? the Answer Is Yes, According to Susan Byrne, Head of Personal Insolvency at KJ Watkin & Co in Aldridge,

The Birmingham Post (England), February 19, 2008 | Go to article overview

New IVAs Legislation: Will It Reduce Bankruptcies? the Answer Is Yes, According to Susan Byrne, Head of Personal Insolvency at KJ Watkin & Co in Aldridge,


Byline: Susan Byrne

Due to the change in bankruptcy legislation, there has been a huge increase in the number of personal insolvencies.

IVA factories have contributed to this significant increase in the presentation of Individual Voluntary Arrangements but there is concern within the industry that some people are entering into IVAs which are not necessarily a suitable solution.

An IVA is a legally binding contract between a debtor and his or her creditors.

Insolvency Service statistics show that there were 26,072 individual insolvencies in England and Wales in the third quarter of 2007.

This was made up of 15,833 bankruptcies - a decrease of 2.1 per cent on the previous quarter and an increase of 2.2 per cent% on the corresponding quarter of the previous year - and 10,239 IVAs, a decrease of 4.3 per cent on the previous quarter and a decrease of 14.3 per cent on the corresponding quarter of the previous year.

The Tribunal Courts and Enforcement Act 2007, which should come brought into force in April next year, contains a new insolvency procedure is called the Debt Relief Order.

This will be administered by the Insolvency Service, a government agency for those who fall into debt and are unable to access bankruptcy or other debt resolution procedures.

In January 2007, the Insolvency Service assembled a broad range of stakeholders to consider how to achieve greater acceptance of IVAs by banks and credit card companies, who are increasingly placing hurdles and their own criteria in the way of debtors.

The outcome is the new IVA Protocol-Compliant.

It is expected to inform and influence the approach of insolvency practitioners and creditors to "straightforward consumer debtor proposals" which should provide a basis for quicker, more streamlined preparation and submission of IVAs to creditors who, in turn, should agree and accept them "as submitted".

The intention is to:

An IVA proposed by a debtor through an IP that satisfies the legislative requirements and those of the protocol will be acceptable to creditors who are a party to the protocol and will vote accordingly

Should a protocol-compliant proposal be rejected by one or more creditors then the debtor and nominee are entitled to know the reason(s) for rejection, and may pursue a complaint through the creditor's published complaints procedure and then with its regulators

Creditors who consider a proposal submitted to them that is described as "protocol-compliant" is in fact non-compliant can pursue the matter with the IP and then with his or her regulatory body. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

New IVAs Legislation: Will It Reduce Bankruptcies? the Answer Is Yes, According to Susan Byrne, Head of Personal Insolvency at KJ Watkin & Co in Aldridge,
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.