New protocol could prove invaluable for borrowers in a lot of debt

A new protocol that has been drawn up by the Insolvency Agency could help borrowers that are in a lot of debt who are looking to enter into an IVA or Individual Voluntary Arrangement.

Awareness of IVAs has been raised over the past couple of years as a result of an array of advertisements run by IVA companies and specialists.

The new protocol has been drafted by the Insolvency Agency with the help of campaigners, debt management officials, and creditors, so all have been able to have an input.

The protocol should make things easier to understand and more transparent for the consumer, and could mean that creditors are more accepting of IVAs.

One spokesperson from the Insolvency Agency stated:

“The Insolvency Service has facilitated a process which has successfully produced a voluntary code for IVAs to reflect the changing needs of the market. It will provide greater transparency for creditors and debtors alike by using standard clauses and a consistent format. Today’s protocol is a significant achievement for everyone involved.”

A spokesman for the British Banker’s Association also commented, stating:

“The BBA, the Insolvency Service and the participating IVA providers are united in support for this agreement, which should provide customers with the reassurances they need in order to make the right choice for their financial futures.”