The predictions that abounded in advance of and at the time of the reforms in bankruptcy legislation brought about by the Enterprise Act (EA) 2002, which came into force on 1 April, 2004, that the number of personal insolvencies would dramatically increase, have been borne out. This is demonstrated by ever-increasing quarterly personal insolvency figures with up to 110,000 people expected to go into a personal insolvency process in 2006.
However, the prediction that the introduction of quicker and cheaper bankruptcies would be the death knell for the more expensive and long-term individual voluntary arrangement (IVA) has been proved incorrect. Is this finally a demonstration of individuals taking more responsibility for their finances or, as many believe, simply a result of good daytime TV marketing?
