In its first
five years, the IPC has worked hard to understand the complex nature of
the insolvency profession and the issues that face those organisations
and individuals that are affected by insolvency.
During those years the
IPC has met a large number of organisations, which represent businesses
and individuals affected by insolvency. It has also spent much of its time
meeting the organisations and individuals within the profession to understand
the complexities of their work.
As a result of these meetings, the IPC has
made a number of recommendations in the Annual Reports and these have been
summarised together with the profession's responses to them at the end
of this Report.
The key issues that have occupied the IPC in 2004 have been
Individual Voluntary Arrangements (IVAs), Corporate Voluntary Arrangements
(CVAs), Statistics of IVAs and CVAs, Fees and Disbursements, Best Advice
for Debtors and Correspondence.
The three Recommendations set out below
and explained in detail later in this report are as a result of our work
in these areas.
Other issues, which the IPC has considered in 2004, are:
Regulation and Monitoring, Complaints, Aged Bankruptcy Cases and debt management
schemes that are at the margins of the insolvency profession.
all these issues is included in the Review of 2004 on page 10. From January
1 2005, the IPC has a new Chairman – Geoffrey Fitchew
who until recently was the
Chairman of the Building Societies Association having previously worked
in the Cabinet Office, the Treasury and as a Director General in the European
Commission in Brussels.
We also welcome two new lay members and two new
insolvency practitioners (IPs) to support the members in the next three
- That JIC should
set a formal standard of best practice for responding promptly to
correspondence and keeping both debtors and creditors informed of what
- That the profession
and the Insolvency Service should obtain regular statistics
about the effectiveness of Voluntary Arrangements as a basis for
their policy and
- That an IP or
an authorised member of his staff should make a fully detailed
assessment of an insolvent debtor's circumstances, provide a
copy to the debtor
with the options open to them and give a reasoned recommendation
as to the
most appropriate action.