An Insolvent Decade: The Changing Nature of the IVA 1987-1997

Pond, Keith

doi:10.2139/ssrn.139556

Cited by 4 publications

(11 citation statements)

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“…This article draws on questionnaire and interview based research undertaken at Loughborough University Banking Centre (Pond, 1998) that focused largely on the IVA process and how creditor attitudes to IVAs have changed over the last decade. The period since 1987 has seen significant ways in which IVAs have changed due both to external, largely economic, influences and to a growing realisation amongst creditors that they can have a significant influence on the IVA process.…”

Section: Take In Box 1 Herementioning

confidence: 99%

“…Lastly, the pay-off "<B" includes the transaction costs associated with abortive attempts to set up an IVA from either the debtor or creditor moving first (see Figure 3). Average dividends in recent IVA cases indicate a 31% return in IVA and 14% in bankruptcy (Pond, 1998).…”

Section: The Insolvency Gamementioning

confidence: 99%

“…Without the debtor's co-operation, however, the proposal cannot be generated and court approval cannot be gained. Only an estimated 4% of all IVAs are commenced via this route (Pond, 1998).…”

Section: The Insolvency Gamementioning

confidence: 99%

“…IVAs are possible after a petition but the time to set one up is limited. IVAs are also technically possible after bankruptcy but only 15% begin in this way (Pond, 1998). When bankruptcy ensues following rejection or failure of an IVA the bankruptcy dividend is likely to be lower than that in a first instance bankruptcy since some of the debtor's funds have been used in paying the IVA fees.…”

Section: The Insolvency Gamementioning

confidence: 99%

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Creditor strategy in individual insolvency

Pond

2002

Managerial Finance

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Explains the option of individual voluntary arrangements (IVAs) when formal insolvency proceedings are taken against a UK individual, noting their rapid growth since they were introduced by the Insolvency Act 1986. Applies games theory (the prisoner’s dilemma) to previously published research data (Pond 1988) on the choices made by debtors and creditors for IVAs in order to analyse and discuss their srrategies. Shows that creditors can do better by assessing the risk of IVA failure, using it to discount the projected dividend and comparing the result with the returns from bankruptcy. Considers the implications for policy makers and others involved.

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Section: Take In Box 1 Herementioning

confidence: 99%

Section: The Insolvency Gamementioning

confidence: 99%

Section: The Insolvency Gamementioning

confidence: 99%

Section: The Insolvency Gamementioning

confidence: 99%

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Creditor strategy in individual insolvency

Pond

2002

Managerial Finance

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“…There is also growing evidence of their successful application 18 . At the time of writing around 25% of formal personal insolvencies are dealt with via IVAs.…”

Section: The Banker -Customer Relationshipmentioning

confidence: 99%

The value of the banker–customer relationship: Experience of individual voluntary arrangements

Pond

2000

J Financ Serv Mark

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Over the last ten to fifteen years, and in response to the huge growth in demand for unsecured consumer credit, UK banks have reviewed, automated, de-skilled and streamlined traditional credit assessment techniques. In pursuit of margin and market share, today's due diligence relies increasingly on centralised data and statistical "certainty".During this same period the nature of the banks' "safety net", the sanction of bankruptcy and court action, has changed too. The effect of this is not only to increase the potential for recovery, in respect of bad debts, but also to increase the moral hazard problem. However, increased risk is masked by creditor power in recovery situations. This paper draws on theoretical and empirical research from legal, ethical and economic viewpoints and suggests that a reappraisal of this aspect of the bankercustomer relationship is essential to restore trust, prudence and long-term profitability.-3 -

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Causes of Early Failures in Individual Voluntary Arrangements

Morgan

2008

SSRN Journal

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An Insolvent Decade: The Changing Nature of the IVA 1987-1997

Cited by 4 publications

References 0 publications

Creditor strategy in individual insolvency

Creditor strategy in individual insolvency

The value of the banker–customer relationship: Experience of individual voluntary arrangements

Causes of Early Failures in Individual Voluntary Arrangements

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