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IVA's jump to new high - banks pleas fall on deaf ears
libitina_2
Posts: 492 Forumite
https://registration.ft.com/registration/ba...00779e2340.html
High-street banks' demands for tougher controls on companies that help consumers offload bad debt
have been rebuffed by the government, which yesterday said lenders had only themselves to blame for
the rise in personal insolvency agreements.
Jim Fitzpatrick, trade and industry minister, said the increase in individual insolvencies - up 66 per cent
in the second quarter of this year - needed to be monitored. But he rejected the "Bankrupt Britain" tag
as a tabloid invention, saying the government did not think "this situation is broke and we need to take
desperate measures to fix it".
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With thanks to Burntbefore on http://forum.globalhousepricecrash.com/index.php?showtopic=10168
When it comes to thought, some people stop at nothing.........
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Comments
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are we missing something here
creditors (i.e. those banks ) have to vote in favour (well 75% by value) of an IVA so exactly who's responsible for the rise in IVAs?0 -
fair point!
but remember the only reason they approve IVA's is when the client will go bankrupt otherwise and then they get nothing (in the majority of cases)
i think some regulation is needed as almost anyone can set themselves up to do IVA's as long as they have access to a licenced insolvency practitioner.
definitely the pot calling the kettle black as it is the irresponsible lending of the creditors that means people have to take this route anyway!0 -
mattp wrote:but remember the only reason they approve IVA's is when the client will go bankrupt otherwise and then they get nothing (in the majority of cases)
I think that the point is that many IVA offers undervalue the amount that could actually be recovered. But the banks have been somewhat lazy and preferred just to accept all offers in the majority of cases without really looking at the figures, on the basis that something is better than nothing.
However, we may find that they begin to press for higher returns now that it is clear that that they're not going to get bailed out by government.
Jim Fitzpatrick has a lot of good points ... the creditor institutions are being somewhat disingenous wailing about the bad debt they're incurring, at the same time as they are busy posting billions of pounds of profits on the back of their boom in lending, penalty fees and the like.
TirianFor where your treasure is, there will your heart be also ...0 -
I think when compared to the recession years of the 90's that the most recent figures are particularly shocking as Blair and Brown think that UKplc is in fine fettle at the moment.
Shocking!When it comes to thought, some people stop at nothing.........0 -
libitina wrote:I think when compared to the recession years of the 90's that the most recent figures are particularly shocking as Blair and Brown think that UKplc is in fine fettle at the moment.
Shocking!
I agree, why has the graph gone so crazy, yet nothing much seems to be mentioned. Seems to follow the house price inflation graph quite closely too.
Hmmm high house prices good for the country - I wonder...."Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Surely this should be headline news? If the outlook is supposedly rosey, then surely someone, somewhere is fibbing.When it comes to thought, some people stop at nothing.........0
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I think some people are very aware of what is happening.
Don't think all this debt & IVA's are accidents.
Someone is making a lot of money somewhere.0 -
Does the above graph include bankruptcies? If not, the number of people opting for an IVA rather than bankruptcy may have skewed the figures as more people begin to learn that IVAs are an alternative to bankruptcy.0
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Includes both.
Data from here I believe.
http://www.insolvency.gov.uk/otherinformation/statistics/200608/presswithtables.pdf"Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Up 66% yoy! :eek:Guy_Montag wrote:Includes both.
Data from here I believe.
http://www.insolvency.gov.uk/otherinformation/statistics/200608/presswithtables.pdfWhen it comes to thought, some people stop at nothing.........0
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