05 December 2008
North-west firm wins libel case
A firm from the north-west of England has been successful in its claims of libel, it has emerged.
According to reports in Crain's Manchester Business, Cleardebt - which is based Timperley, a village located in the Greater Manchester area of Altringham - sued the IVA Council (IVAC).
Along with fellow claimants accountancy firm Hodgsons and insolvency practitioner David Mond, the company received an apology and £250,000 in damages as part of a settlement.
The case centred on letters sent out by the IVAC, which alleged that individual voluntary arrangements (IVAs) devised by Cleardebt had been mis-sold and that the firm had been running an "IVA factory".
In a written apology, the IVAC admitted that the allegations were entirely unfounded.
Established by the Insolvency Act 1986, IVAs are a formal alternative for consumers wishing to avoid bankruptcy. They involve a repayment proposal which is presented to a debtor's creditors via an insolvency practitioner.