Harnessing technology to reduce early failure in IVAs and trust deeds
Failing IVAs and Trust Deeds have always been an issue in the personal insolvency industry.
In the case of IVAs, the latest official statistics on failure rates have shown that, for the past four years, the percentage of those failing within only the first three years has been on the rise.
Reportedly, recent years have seen 9% of all IVAs failing within the first 12 months and double the percentage failing within the first 24 months.
The reasons why an arrangement can fail are manifold, as debtors can miss months of repayments for multiple reasons – one issue is insolvency firms lacking the technology to gather all the relevant information for every case with ease and accuracy, to properly support their clients. Traditionally this is a lengthy, paper-based process. We’ve spent extensive time digitising this process for the benefit of both consumers and debt advice firms.
The latest technologies can make a huge difference to get a clear view of individuals’ finances and affordability, helping to prevent arrangement failure.
As leading software providers, we at HubSolv have put increased emphasis on streamlining the IVA and Trust Deed process for all parties involved to help facilitate success of each case, from the moment of set-up through to completion.
An automated case management system can help insolvency professionals to get a more accurate picture of the debtor’s financial circumstances. At HubSolv, we are enriching the Income & Expenditure process with Open Banking technology to instantly provide accurate financial data.
With integrated Open Banking, we can automatically populate information from the individual’s current account in real time. The technology fully complies with the Standard Financial Statement and allows those in financial difficulty to share their data in a secure manner, for a full and accurate affordability assessment.
The advances in case management systems assist in expediting the process for personal insolvency, but more importantly they ensure transparency and accuracy in crucial stages, which helps minimise the risk of arrangement failure.
Advisors are able put forward a suitable solution based on an accurate picture of the client’s financial situation. Insolvency practitioners benefit from accurate information throughout the life of a case for debtors, while creditors can more easily forecast returns. With a focus on bringing transparency to the personal insolvency sector, we can also help to ensure consumers are treated more fairly and given the best advice for their unique situation.
A smooth process from start to finish
The role that Insolvency Practitioners and firms play to help people struggling with personal debt is becoming more important than ever. With the rising number of insolvency cases to process and the increase in failure rates, Insolvency Practitioners require software solutions that can significantly improve efficiencies and accuracy.
The IVA or Trust Deed module in HubSolv helps insolvency practices to save time in all the stages of the process:
- Pre-appointment and post-appointment modules with a workflow-based approach.
- Credit reporting and rule-based Income & Expenditure screens with an accurate decision process that suggests the most suitable solution for debtors.
- Secure meeting of creditors module to propose cases to creditors in a quick and easy way, submit modifications and register acceptance or rejection.
- Banking module to allow practices to automate arrears handling; payment of fees, dividends and collection of contributions.
- Features to improve customer communication, with automated messaging via email and SMS.
- Workflow automations easily configured to a company’s needs.
- Productivity enhancing tools including user tasking system, document templates, compliant document packs and fully customisable checklists.
Learn more about HubSolv’s case management software here.