Neil Cronshaw of Varden Nuttall

We spoke to Neil Cronshaw, Insolvency Practice Manager at Varden Nuttall, about awards, IVAs and industry regulation...

1) What does Varden Nuttall do?

Varden Nuttall helps individuals in England, Wales, Scotland and Northern Ireland who have financial problems. These can be individuals who are employed, self-employed, company directors and sometimes even unemployed. We would discuss their specific situation and the options available before opting for the best way forward and then putting that into place.

2) How long has the company been going and how long have you worked there?

Varden Nuttall has been trading for eight years and has grown from one Insolvency Practitioner and five staff to what is now three Insolvency Practitioners and 35 staff. I have worked here for nearly three years and have seen some exciting developments in that time including the recent development of providing Protected Trust Deeds for individuals resident in Scotland.

3) You currently hold the title of Insolvency Practice Manager, and recently received a nomination for Insolvency Manager of the Year at the Insolvency and Rescue Awards 2011of the Year, could you tell us a little bit about what your job involves day to day?

Thanks for getting that one in, it saved me having to mention it…..along with my colleague Michael Howorth who has been nominated for IP of the year and the pre appointment team who have been nominated for support team of the year.

My role is extremely varied and generally ensures I don’t get bored, one minute I could be speaking to a debtor who wants some financial advice and the next I could be speaking to a charity who wants some form of sponsorship. Generally I would be dealing with staff queries on particular cases whether it is one that has already been approved or a potential new case. I also deal with the introducers who send us cases, to discuss a potential case or the payment terms for introducing the case. I also play a major role in liaising with creditors and their representatives and have regular meetings with them to discuss, best practice, voting trends, developments and other general insolvency matters to ensure we are adopting best practice and to keep up to date with industry developments. I obviously have various reports to provide for introducers as well as various internal meetings with fellow directors, the IP’s and other members of staff.

4) How does the majority of your business reach you?

The majority of our business comes from external introducers and our sister company Debt Release Direct who offer Debt Management Plans and an Assisted Bankruptcy product. In addition we also have various websites generating leads and receive personal recommendations from satisfied customers.

5) What kind of cases do you deal with on a regular basis?

A lot of our cases tend to be IVAs for people who have got in trouble through the ‘classic debt spiral’ where they have just borrowed more and more money trying to resolve their debt problems by consolidation for example. The majority (about 80 per cent) of the IVAs are for people in employment who don’t wish to go bankrupt for a particular reason. This could be to protect an asset like their home, whilst others want to ensure their job isn’t put at risk or sometimes they just want to make some form of repayment to their creditors. The remainder would be IVAs for self-employed people or directors who wish to safeguard their directorships or their business which may be endangered by a bankruptcy order. Protected Trust Deeds for residents in Scotland have now also become part of our regular caseload and I expect the numbers for these to increase over the next 18 months.

6) How many people don’t realise how many options, such as an IVA or settlement services, are open to helping them emerge from debt?

When I started in this industry about 15 years ago, an IVA was quite an unknown alternative to bankruptcy and wasn’t that heavily used by debtors to solve their financial problems. With the massive growth in internet usage a debtor is far better informed about their numerous alternatives than ever before. In addition the growth of large companies who took out major press, radio, television and internet advertising campaigns has ensured that the majority of people in financial distress are aware of the alternatives and can find easily accessible ways to resolve their problems.

7) How straightforward is the insolvency procedure?

The insolvency procedure is more straightforward than ever owing to the various reforms over the last few years. These have massively reduced the number of debtors who need to file an IVA at Court as less than 1 per cent of our cases now require an interim order (which protects the debtor from pending legal action). The IVA protocol (2008 & 2010) has also simplified the process and helped standardise the simpler employed IVA’s. Provided that the debtor works with you to provide all of the information that you require to formulate a fair and honest proposal it can be drafted in a couple of days.

8) What do you predict happening in the debt management sector of the next couple of years?

I can foresee quite significant changes over the next couple of years. The OFT, DRF and DEMSA are already working towards further regulation in the industry which I fully embrace. An individual (or couple) under the pressure of financial difficulties needs to ensure they can obtain ethical, fair and honest advice at a time when they need it most. I can also see further changes to debt management plans more in line with a formal procedure like an IVA or the Scottish DAS Scheme.

9) If you weren’t working at Varden Nuttall what would you be doing?

I would like to think I would be in a similar industry helping people but in honesty I would rather be a professional sportsman like a footballer or tennis player.

10) What do you find the most common cause of debt is? Biggest financial burden?

There are many reasons why individuals fall into debt the main ones being: redundancy, relationship breakdowns, illness or accident, generally living beyond their means or a change in circumstances.

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