Banks in the UK are now beginning to reject the IVA in a bid to reduce the amount of 'bad debt' they're forced to write-off each year.
According to Debt Free Direct, banks have lost patience with debt management companies who they believe are exploiting the procedure for their own benefit.
A spokesman for the group added: 'It is apparent that changing creditor criteria for acceptance of an IVA, whether justifiable or not, is having an impact on case conversion.'