28 November 2006
Debt consolidation experts have heralded the impending arrival of Simplified Individual Voluntary Arrangements (SIVAs) as the most effective way of helping consumers consolidate their debt into one, manageable sum.
Mike Norris, director of policy at the Insolvency Service, told Reuters that the SIVAs would be implemented by April 2008 and aimed to cut bureaucracy and speed up the process, making the debt solution available to more people as well as cutting costs.
This system is also predicted to please creditors, as they are likely to receive more of their money back in a shorter amount of time."By keeping people out of bankruptcy and, where appropriate, getting them into Simplified IVAs, we would expect to see better returns for creditors," Mr Norris told Reuters.
IVAs are not a new phenomenon; they have been available for 20 years, but they have grown in popularity in recent months thanks in part to an explosion in house prices and a rise in the cost of utilities.
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