The new styled SIVAs - which are expected to be available from April 2008 onwards' although this is not yet set in tablets of stone, are for consumer debtors who owe £75,000 or less. At the creditors meeting, only a 50% majority will be required, and creditors will not have the right to modify the proposals. This may seem beneficial, however as there is no room to amend the proposals on the creditors parts, this may result in even more rejections. We will see.
Under the simpler procedure, there will be no need for supervisors to report to Court or on an annual basis, thereby making the whole process cheaper and therefore providing creditors with a greater recovery. It is hoped that this new procedure will enable more consumers who are led towards DMPs to avail of simpler, cheaper IVAs, as suprisingly still over half of people in financial difficulty revert to DMPs rather than IVAs or bankruptcy.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
For further details contact me at
http://www.melaniegiles.com and view my IVA blog at:
http://melaniegiles.blogs.iva.co.uk
