You're right chopps,
IVAs are a very good way of assisting people in debt, but the startling thing about the first page of the article is that firstly, it states £6000 of debt, and secondly that the income is £40000 per year.
An IVA wouldn't even be entertained for debts of £6000 in the first place. As with the new debt settlement arrangement here, where it is for debts of €20000 and above, in the UK, it is for debts of £15000 or more.
Also, as the person has an income of £40000, the £6000 debt could probably be dealt with by a bit of belt-tightening! If it's a case where the mortgage is taking most of the income, or perhaps it is due to some other essential expenditure eg medical costs, the debt relief order would be more applicable, which is the equivalent of our debt relief certificate, for debt up to £15k/€20k.
But the relief cert would be unlikely given the level of income, as the person would probably have disposable income of more than £50 per month. In the case a debt management plan WOULD be the sensible option. It's the middle ground between the two. If the person could afford £300 per month, the £6000 would be gone in two years, paid in full, including fees which would amount to approx £1200 total, so total cost of £7200.
To be honest, a person earning £40k with disposable income should be able to renegotiate this directly with their creditors themselves, but in some cases where creditors can be uncooperative, it may be useful to go to a debt management company.
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