Creditors are increasingly refusing to agree IVA (Individual Voluntary Agreement) proposals on behalf of their customers. An individual needs the creditors that are responsible for at least 75% of their debt to agree to the proposals for the IVA to go ahead.
There have been concerns recently about how suitable IVAs are for individuals who may later struggle to keep up with the repayments, which would lead them into bankruptcy.
As a result shares in several IVA companies have fallen significantly over recent months. The Office of Fair Trading recently wrote to a number of firms to bring to their attention the risks of making false advertising claims such as promising to write off up to 90% of the consumer's debt.