The Insolvency Service is to hold a 12-week investigation into the possible mis-selling of Individual Voluntary Arrangements and the amount of fees firms dealing with the arrangements can charge.
This comes as some people who are more suited to bankruptcy are being urged towards an Individual Voluntary Arrangement IVA. IVAs are where you have a formal agreement to repay debt following difficulties rather than court action and bankruptcy.
Our view
Figures from the Insolvency Service indicate that the number of Individual Voluntary Arrangements nearly doubled last year. Be careful about entering into an Individual Voluntary Arrangement or bankruptcy, as both may make it difficult to obtain credit in the future.