In what can be only be described as a “stand off” between the British Bankers Association (BBA) and the Insolvency Service, no resolution has been found to the proposed reduced charging structure for the Insolvency Practitioners who create and administer IVAs. This puts the entire future of IVAs (Individual Voluntary Arrangements) in doubt.

One of the largest IVA businesses, AIM Quoted Debtmatters announced to the stock exchange last month that they couldn’t afford to carry on business under the new charging structure. They said “the process did not provide any firm conclusions on the issue of fees charged by insolvency practitioners and this has led to well publicised concerns over the future of the industry”.

Trumpo believes that Insolvency Practitioners have a valuable and worthwhile role to play in today’s credit hungry society, and the Citizens Advice Bureau (CAB) can’t cope with the number of people coming to them with debt problems. If the IVA firms disappear and the CAB has to pick up hundreds of thousands of cases that could have been handled by professional IVA and debt management services, who knows what will happen? The BBA and Insolvency service need to act quickly before we have another Northern Rock level crisis on our hands!

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