We were all set to offer a ClearDebt IVA to Miss D – all the documents had been done and we set her up to meet one of our network of insolvency professionals to make sure she understood her rights and responsibilities.

All IVA firms are supposed to do this, but we know many don’t. In this case, it meant we lost an IVA – but it was a financial lifesaver for Miss D.

It transpired she was about to move back into her very elderly parents’ home – they are frail and need full time care.

She’s an only child and stands to inherit the house. This meant that, in the event of her parents’ sad demise, the house would almost certainly have become an asset to be paid into the IVA – she’d lose her inheritance.

We advised her to opt for bankruptcy instead.

We would not have known if the meeting had not happened – we are very concerned because a government consultation issued on July 14 suggests the requirement for this meeting should be removed: ClearDebt thinks this means debtors won’t get the best advice and that creditors will lose out too:

This meeting makes sure the debtor knows exactly what his or her responsibilities are under the IVA – and how they will be affected by it (both during the IVA and after it has been completed).