60% of terminated Individual Voluntary Arrangements created by Insolvency Practitioners showed evidence of poor practice.
Examples of this included inaccurate recording of income and expenditures, incorrect dismissal of other debt solutions, and providers failing to ensure that people understood what they were signing up for.
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 five to six years and allow people to pay an affordable monthly contribution towards their debts.