A number of friends of mine have been through the IVA treatment and it strikes me that it is one aspect of the Insolvency Act 1986 that has worked quite well. It has been a sensible and pragmatic approach, especially for those who have taken it without going for fully fledged bankruptcy. I reiterate the concern expressed by my hon. Friend the Member for Eastbourne that there is a danger that making bankruptcy relatively more attractive—the exit route being that much swifter—will create a strong disincentive to take the IVA route, which is a sensible one, particularly for individuals with fairly minimal debts. People may have debts totalling a few tens of thousands of pounds, some of which is with the bank and some with individuals or small trading companies.

My experience in advising a friend who took the IVA route was that he was able to reach a sensible deal that did not involve the large expense or the lengthy process of a fully fledged bankruptcy. However, an individual who might under the current regime be happy to take the IVA route, whereby all the creditors get a certain number of pence in the pound, might feel that, because the time limit for bankruptcy discharge has become more attractive, they should take that route and pay far less. They might do so because they have relatively little in realisable assets, or are unable to cut a deal that involves borrowing money from a friend, for example. That is my only concern. I am not entirely convinced about the provision. The proof of the pudding will be in the eating: whether the take-up of IVAs begins to decrease. Conservative Members have at least had a chance to utter a word of warning.