This is a guest post by Peter Sargent, an Insolvency Practitioner and Consultant at BHP Clough Corporate Solutions. He is a member of the IPA’s Membership & Authorisation Committee and former president of R3. The failure of Varden Nuttall (and its holding company), a middle ground IVA bulk provider has brought into sharp relief the current system of Insolvency Practitioner (IP) … [Read more...]
Debt news and policy
Debt Camel articles on what's happening in the world of personal debt in Britain.
For my collections of other news items, please see Weekly News Summaries.
Here is my "League Table" for IVA firms in 2016, showing all firms that registered more than 250 IVAs in the first six months of 2016. The figures were supplied by the Insolvency Service to Louise Yates. The 2012-15 figures were full year figures and I used a cut-off for the table of "over 500" cases a year. As the 2016 figures are for half a year, I have halved the cut-off to "over 250". The … [Read more...]
Manic spending, during a high or period of mania, is one of the six triggers for increased spending identified in the Money and Mental Health Policy Institute's latest report, In Control: A consultation on regulating spending during periods of poor mental health, published last week. I have been contacted by a reader who has suffered from bipolar disorder for many years - this is Miss D's … [Read more...]
If you want to talk about setting up an Individual Voluntary Arrangement (IVA) and whether it is a good debt solution for you, which firm should you talk to? You could put IVA into google... but how do you decide which of the tempting "see how much of your debt you can write off" links to click on? Or you could choose the person that cold calls / texts you telling you about a little known … [Read more...]
In June the new 2016 IVA Protocol was published. It would have be helpful if the Standing Committee had issued a guide to the changes from the 2014 Protocol, but they haven't, so this article looks at the significant changes, ignoring routine updating (such as replacing OFT by FCA) and some which seem to me to be very minor. My thanks to Michelle Butler who wrote about the changes earlier this … [Read more...]
On 21st July 2016 bankruptcy fees were increased. This had been announced a few weeks earlier by the Insolvency Service, see changes to the bankruptcy fees. The important change for people who are going to go bankrupt themselves (in legal jargon "petition for their own bankruptcy") is that the bankruptcy deposit fee is now £550, an increase of £25. This is in addition to the current … [Read more...]
The Council for Mortgage Lenders(CML) has recently provided an update on how the stock of existing interest only mortgages is changing. In 2012 lenders increased their efforts to make contact with the holders of interest only (IO) mortgage, aiming to ensure that as many borrowers as possible can repay the mortgage at the end of the term. So now in 2106 we can see whether this is working. How much … [Read more...]
The government is planning to introduce a Help to Save scheme to encourage people on low incomes to build up a rainy day fund. It is consulting on the details of the scheme and asking for responses by 21 July 2016. I have looked before at whether you should save an emergency fund or repay debt, and at the importance of saving for people in a DMP, IVA, DRO or bankruptcy. So I am very interested … [Read more...]
Varden Nuttall, a mid-size Individual Voluntary Arrangement (IVA) firm, were placed into administration on 24 March 2016. They were the twelfth largest in the "2015 IVA League Table", when they took on 765 new IVAs. From the Statement of Administrator's Proposals on 3rd June 2016, the firm has about 2,500 IVA customers. They also had about 300 Trust Deeds (a Scottish form of insolvency) and … [Read more...]
A lot of people may be told this summer that their Debt Management firm is closing. If this happens to you, your reaction may be alarm - for many people their Debt Management Plan (DMP) rescued them from a difficult financial situation and they are very happy with the monthly payments they are making. This article looks briefly at why these closures are happening, but concentrates on the … [Read more...]