I blogged earlier this month (here) about the 2011 Q1 insolvency statistics which included a comment on personal insolvencies and that fact that these had decreased.
Unfortunately this has had a knock-on effect on a volume IVA provider, as detailed in Accountancy Age (here). Whilst I am sure the IVA provider will factor in the reduction now and in the future, it is a sure sign that such volume IVA providers will struggle in the future.
I have to say I am not a fan of volume IVA providers as they tend to "commoditise" a complex formal insolvency procedure and apply almost a "one size fits all" approach to a procedure that is meant to be bespoke for a debtor's circumstances. Don't get me wrong there are some extremely competent and reputable volume IVA providers out there. However, I have seen many instances over the last few years where debtors have been persuaded to enter an IVA when such a procedure was completely the wrong thing for them.
IVA's do work, particularly if they are well written. I do suspect, however, that we will see a further fall in the number of IVA's in favour of Debt Relief Orders in the near to medium future. This may mean more volume IVA providers struggling due to lack of income (i.e. lack of new cases) and hopefully this will not lead to an increasing desparation on the part of the volume IVA provider to persuade even more people into an inappropriate IVA.
Always make sure you get sensible advice, consider all the alternative options (not just an IVA) and above all make sure you undertsand what you are committed to with an IVA. If necessary, get a second opinion from an independent Insolvency Practitioner who will be more than happy to help.
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