The 2012/13 statistics released by ITSA show that Worrells still administers a large share of all the national Personal Insolvency Agreements (PIA) under Part X. It is interesting to note a decrease in the number on last year. There is a 25% decrease in fact. Insolvency activity on the whole is down and the only corollary that can be drawn to ‘account’ for the decrease is a proportional increase in the Part IX debt agreements. It is pleasing to see that the decrease hasn’t been due to an increase in bankruptcy figures, which demonstrates to us that PIAs are serving their purpose – a pre-bankruptcy solution.
PIA’s allow debtors and creditors to come to a payment agreement, without resorting to bankruptcy. Each PIA proposal must be individually tailored to suit both the debtor and the creditors, so that a “win, win” result emerges. Given the published statistics Worrells seem to be pretty good at this.
A feature of Worrells approach to PIA’s is our practice of paying very regular dividends. On average we pay a PIA dividend every two days, which adds to the “win, win”.
Extract from our new 2013/14 Guide to Personal Insolvency, due to published shortly.