We use data like this to help our IP panel members improve what they do. This is good for everybody involved. One of the reasons for setting up TIP was to bring transparency to the IVA sector. It’s part of our plan to restore trust.
Insolvency Practitioners (IPs) on our panel give us daily updates on their cases. This ensures full transparency on things like IVA completions, arrears and terminations (failures).
This is good for debt advisors (who can also access to specific case information, with their clients’ consent). It clearly shows that their clients are coping (or not) and being appropriately supported.
TIP IVAs are less likely to fail in the first two years as Individual Voluntary Arrangements provided by the sector as a whole.
And, creditors can more easily forecast the returns they’ll get from their book of TIP IVAs. They can compare our IVAs with the market as a whole.
How we found out about IVA failure
As part of our due diligence process, TIP asked about IVA failure rates. The data we got showed that the successful candidates for our panel had low and similar failure rates.
At about the time we were doing this the government’s Insolvency Service published a set of data about IVA failure rates in their first two years of what is, usually, a five-year life.
The Insolvency. Service data related to IVAs started in 2015 and 2016. They gave termination rates for the first 12 and 24 months of the life of these IVAs. We asked our panel for their data over the same period.
Our panel’s data