Putting a cork in it : an appreciation of the May 2007 IVA consultation document

The May 2007 consultation on Individual Voluntary Arrangements (IVAs) proposes six reforms to current legislation to be enacted via Legislative Reform Order (LRO). This brief article outlines the six reform areas and discusses the key reforms against a background of the changes that have been seen in the insolvency “market” in recent years. The reforms combine Cork’s practical approach to dealing with smaller debtors with current budgetary and administrative drivers and 20 years of experience of the IVA regime. The “market” driven logic for these reforms is clear. Few commentators forecast the huge growth in IVA numbers following the Enterprise Act 2002 changes to bankruptcy law. Indeed, the death of the IVA was widely predicted, yet the underlying growth in consumer credit and its attendant problems is clearly linked to both bankruptcy and IVA growth.