Regulatory Bodies fight back against The IVA Council and UK Bankruptcy
The IVA Council and UK Bankruptcy have been sending letters to clients in IVA’s warning that they may have been ‘mis-sold’ their IVAn and not to contact their IP again. These letters are mass produced unsolicited mailings that make use of the public information found on the government Insolvency Service website.
The IVA Council & UK Bankruptcy should not be confused with any official government body. The government’s Insolvency Service has issued a statement about the IVA Council which reads:
"The Insolvency Service would like to make it clear that we are in no way associated with an organisation called the IVA Council.
IVAs are a flexible and effective means of dealing with debt. For debtors they provide protection from creditors, debt forgiveness, flexibility in terms of what assets are included, and none of the restrictions, which apply in bankruptcy. For creditors they provide a better return than could be obtained in bankruptcy.
IVAs allow debtors to repay their creditors that which they can reasonably afford and resolve their financial problems, and are supervised by licensed and regulated insolvency professionals.
The principal statutory alternative to an IVA is bankruptcy. Bankruptcy should always be the last resort as the debtor will lose control of their assets and will be subject to bankruptcy restrictions, potentially up to 15 years.
Consequently The Insolvency Service does not condone any implication that people in IVAs should stop paying and enter bankruptcy. If you have had any communication from the IVA Council or other third parties suggesting that you stop making payments under your IVA you should discuss this with the supervisor of the IVA and seek advice from professional, qualified advisers before taking any action."
This statement can be found at http://www.insolvency.gov.uk/ivacouncilmessage.htm
Watchdog has passed on complaints received as a result of the unsolicited letters to the Office of Fair Trading who are investigating the complaints regarding the unsubstantiated claims found within the letters.
At Tenon Debt Solutions we make sure all options are explained thoroughly. If you decide to propose an IVA the advisor drafting your IVA will make an appointment with you specifically to discuss your reasons for not going bankrupt and to fully explain what an IVA involves. You will also receive a booklet called ‘Is a Voluntary Arrangement Right for Me?’ published by R3, a professional association for insolvency specialists in the UK. A copy of the booklet can be downloaded from their website www.r3.org.uk
If you have received a letter from the IVA Council or the UK Bankruptcy and still have concerns, please contact our Supervisory department on 0161 200 6080 who are here to help you with any questions you may have about any aspects regarding IVA’s.