The government’s decision to withdraw the proposed Simple Individual Voluntary Arrangements (Sivas) has been criticised by the Debt Resolution Forum (DRF).
Had the government’s proposed reform gone through, Sivas would have been made available to the public in the spring of next year.
However the scrapping of the plans has, according to the DRF, resulted in “a blow against debt resolution”.
“The Siva would have meant far fewer creditors would be able to stop IVAs by requiring over-indebted individuals to repay more than they can afford,” DRF chairman and chief executive officer of debt solution firm ClearDebt David Mond explained.
He added that it was “impossible to understand” why the government has taken the action at a time “when more people need more help with debt than ever before”.
In related news, Insurance firm LV= has advised employees to check what financial assistance would be available to them should they be of work for an extended period of time.
By Tom Musk