Industry News

TV’s Secret Millionaire Goes Into An IVA

Chek Whyte, who appeared on Channel 4's Secret Millionaire has succeeded in striking a deal with creditors that could save him from bankruptcy.

His creditors yesterday voted for a new Individual Voluntary Arrangement (IVA) that pledges Mr Whyte will pay back debts owed over a period of time.

The property developer, whose businesses have debts of about £33m said "I'm elated and ecstatic to get the vote."

Councils Urged To Partner Debt Charities In Wake Of Ombudsman Criticism

Local authorities can avoid heavy-handed treatment of Council Tax arrears – criticised by the Local Government Ombudsman this week – by partnering with recognised debt advice services to help deal with the underlying problem.

UK registered charity The Debt Advice Foundation issued its advice following two announcements from the Ombudsman this week, in which Newham and Manchester councils were criticised for implementing bankruptcy in two individual cases without following appropriate procedures.

Government To Consider Tighter Debt Management Regulation

The Ministry of Justice has launched a consultation process on the regulation of debt management companies. The consultation paper will explore whether regulated schemes should be introduced, how they would work and whether tighter non-statutory regulation of current schemes would be more appropriate.

Debt Advice Foundation welcomes the move, which combines two of the charity’s central campaigning objectives; tighter regulation of Debt Management schemes and the appropriate application of such schemes for the benefit of both debtors and creditors.

Numbers Seeking Debt Advice Soars

New figures show Citizens Advice Bureaux in England and Wales dealing with 9,300 requests for debt advice every working day. This is a 27% increase in the three months to the end of June 2009 compared with the same period last year.

British Actor Neil Morrissey Enters an IVA

Actor Neil Morrissey has entered an IVA after admitting to having debts totaling £2.5m.

Neil's portfolio of property and commercial enterprises failed to perform, leaving him insolvent and facing bankruptcy.

But Morrissey said "Bankruptcy's the easy way out. I decided no, I'd step up to the plate, try to do the right thing and get everyone their money back."

Misleading Debt Firms Shut Down

One hundred companies offering to write off debts or secure personal injury compensation have been shut down by the Ministry of Justice in the last two years.

The Ministry of Justice said a number of firms had been guilty of misleading advertising, claiming that credit card debt could be written off within six weeks or that 80% of credit agreements were unenforceable.

Insolvency Numbers Reach Record High

There were 33,073 individual insolvencies in England and Wales in the second quarter of 2009. This was an increase of 27.4% on the same period a year ago.