In early 2014 the Financial Conduct Authority increased regulation surrounding the provision of Debt Management Plans. This has lead to Insolvency Practitioners now concentrating on marketing IVAs which remain outside the control of the FCA. As a result more people have started an IVA.
Whilst DMP’s suited many people an IVA is often better as the payments last for fixed 5 year period. However there are reports of IVA’s being mis-sold to people where bankruptcy would have been a better option.
The number of people entering into an IVA has been rising for several years – with a 20% increase between 2016-17 alone.
It is obvious form this that personal debt in the UK is increasing despite bankruptcies remaining constant.