Insolvency Service is making ‘meaningful improvements’ to the system

The Insolvency Service has published its latest ‘Confidence in the Regime’ report, which looks at how stakeholders across the insolvency community have received the actions and policies of the Insolvency Service.

The latest report was commissioned to gauge the success of the organisation’s five-year strategy, now in its final year. The research sought the views of insolvency practitioners, people in debt, creditors, directors, academics, legal professionals.

The findings will be used by the Insolvency Service to help shape how the regime will work in the future and further improve confidence in the system. The research found that confidence has increased, particularly in the insolvency regime. Reforms to Debt Relief Orders (DROs) and Individual Voluntary Arrangements (IVAs) were strongly supported. DRO reforms widened access and removed barriers preventing customers entering the DRO at the optimum time.
It also found that changes around IVAs provided consumers with better information and provided positive steps towards a fairer system.
Proposals to strengthen insolvency practitioner regulation were also welcomed.

Overall, confidence in the insolvency system has improved due to clearer information, better solutions, and more efficient processes. Remaining concerns include high bankruptcy costs and inconsistencies in corporate practices.

Duncan Beach, Chief Executive of the Insolvency Service said “This report clearly shows the Insolvency Service and our partners across the sector are making meaningful improvements to the insolvency system.

“Just as importantly, this is evidence that these reforms and regulations are having a positive impact on those who find themselves with challenging debt.

“I am confident that an ever-improving insolvency system – one which is fairer and is flexible to the unpredictable financial world we live in – can also benefit the economy.

“We know there’s a long way to go, and this report will contribute to our new strategy – which we’ll publish later this year – aiming to further inspire confidence in the insolvency system and be at the forefront of change that helps the public and practitioners alike.

My thanks to all those who took part – these thorough, independent, qualitative reports provide such valuable information to us.”