Increasing numbers of IVAs fail
Over 30% of IVAs since 2016 fail
The latest official government reported statistics show that increasing numbers of IVAs do not complete. They fail, leaving the borrower back with their debts.
32% of IVAs started in 2016 have failed, and some of these IVAs from 2016 are still in progress, so the final failure rate will be over a third.
Emergency provisions during the pandemic enabled people to have longer repayment holidays, and consequently termination rates fell – bringing distorted statistics. Therefore, it will be longer before these IVAs complete. Until then, more are set to be failing as emergency breaks have ended, and with inflation increasing, this in turn brings a cost-of-living crisis.
“Historically, lifetime termination rates have typically been approximately 5-6 percentage points higher than the rate after four years,” the report said.
