It may sound stupid but there is a problem IVAs are down. These are Individual Volountary Arrangements - this is where some one who is financially fucked agrees a series of repayments over a period of, I believe 5 years, and the balance of the debt is written off. The IVA is an option of resolving debts short of bankruptcy and for many lenders has less stigma. It must be passed by the majority of creditors - lenders
So why should a reduction be bad news? It depends why. This is not because less people are in financial problems it is because lenders are objecting to IVAs and stating they are not in the individuals & lenders interest.
The bad news is not that IVAs are dropping but that those in the category are being refused by lenders. If the lenders are right to refuse it means that a lot of people are already in inappropiate IVAs and a misselling scandal looms. If they are acting in only there interest will people go for the more dramatic bankruptcy option?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment