(London 2/11/07) “These statistics are just as the industry has been predicting. The 14.3% year on year reduction in the number of IVAs is not down to a lessening of Britain’s personal debt, but rather to increased pressure from creditors. Creditors have made it more difficult for many people to propose an IVA, by asking for increasingly unaffordable returns and unrealistic caps on monthly living expenditure. In addition, the reduced fees that Creditors will accept from each IVA mean that the large amount of work that the arrangement entails are beginning to make less commercial sense for Insolvency Practitioners.

Hardening creditor opinions against IVAs, as evidenced by today’s figures, mean that indebted individuals have only two options- an unregulated and often lengthy Debt Management Plan, or Bankruptcy. An IVA can be the most suitable option for who debtors who want to keep their home, or work in a profession where they cannot be made bankrupt. As such, our worry is that these debtors are being forced underground into Debt Management Plans, meaning that their debt isn’t registered in today’s statistics.

Next year is a critical one for the industry in terms of regulation and creditor attitudes. The industry expects that there will be an increase in the numbers of Bankruptcies next year, as people applying for IVAs are rejected and have to pursue a different path to resolve their debts. At Thomas Charles, our worry is that today’s figures mask the real levels of indebtedness in Britain today. We have just commissioned a survey with YouGov, which shows that 15% of Britons owe over £10,000 in unsecured debt. We must work to bring awareness of debt issues into the open, so that more people can confront and deal with their money problems”.

About Thomas Charles & Co Ltd

Thomas Charles & Co Ltd was set up in 2004. The Joint Managing Director, James Falla has 7 years experience in the insolvency and debt management industry and was involved in the set up of debt help specialists, Brookvale Group PLC, listed on PLUS Markets (formerly OFEX) since 2001.

Thomas Charles operates throughout England and Wales with its head office in Acton (West London). It has a personal, consultative approach to debt management. It focuses primarily on providing formal solutions for debt problems including Individual Voluntary Arrangements and Bankruptcy. However, it will also provide advice around informal debt repayment plans where appropriate. It works with third party Insolvency Practitioners around the UK.

About James Falla

James Falla has advised people who have personal debt problems since 1997. During this period he has helped 1000’s of people through the IVA process and worked with many others who have decided to undertake both Bankruptcy and informal Debt Management Plans.

James co-founded Thomas Charles (www.thomascharles.com) with William Berry in 2004 with the objective of providing clear impartial advice and solutions for people in serious debt. James has made numerous TV and radio appearances, including BBC1 News, BBC News 24, and Wake Up To Money