60% of terminated Individual Voluntary Arrangements, created by Insolvency Practitioners, showed evidence of poor practice.
Examples of this included people’s income and expenditure not being recorded accurately, other debt solutions being incorrectly dismissed and providers failing to make sure people understood what they were signing up to.
Individual Voluntary Arrangements are a legally binding agreement between a person who is insolvent and their creditors.
Licensed Insolvency Practitioners administer the arrangements which usually last for between five and six years and give people the opportunity to pay an affordable monthly contribution towards their debts.