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IVA lenders 'tougher than before'

24 August 2007
New research has revealed that reaching an individual voluntary agreement (IVA) with a lender is becoming tougher.

According to research from Debt Free Direct, this hard stance by firms may be having an impact upon those who need help the most.

An IVA is an organised repayment schedule drawn up between a person in debt and creditors, allowing the two parties to reach a settlement where a percentage of the arrears is paid off.

With money charity Credit Action claiming that the UK currently has a personal debt mountain of over £1.3 trillion, it may be that more and more people look to IVAs for help.

"Demand for debt solution and for IVAs is there and it exists. What's much harder now is the attitude of lenders who are not as helpful in agreeing IVA deals and are becoming much, much tougher," said Derek Oakley, insolvency director at Debt Free Direct.

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