Insolvency News Roundup - Irish Bankruptcy Reform, Debt Management Review and Suffering Scots
There have been some interesting insolvency items in the news of late. The Irish Independent has published an interesting article arguing the the recent Irish bankruptcy reforms will have little affect on their debtors' experience of bankruptcy law. Ireland have recently reduced the automatic discharge period from 12 years down to 3 years. They are also currently considering a new personal insolvency bill.
Elsewhere, R3 are pleased apparently to hear that BIS are going to look into the debt management industry. An interesting reader comment to the story in Accountacy Age notes: "IPs are under qualified when it comes to debt management and should certainly not be looking for any enhanced role in that area. Already in IVAs they act as little more than rubber stamps - CCCS only employs only one insolvency practitioner. IVA misselling , despite IP 'involvement', is likely to be the next big scandal. Multiple thousands of IVAs are just waiting to fail as soon as interest rates start rising. Most vulnerable are those IVAs , signed off by IPs, dealing with low levels of debt and low monthly payments ( £140+). These payments will be wiped out by increases in priority debt payments over the next 5 years and the debtors will be returned to square one - plus the fees already paid out of course."
Finally, the Scottish are suffering more from financial distress according to the BBC.
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...