It is becoming tougher for people with debts to obtain IVAs, an industry expert has said.

Derek Oakley, an insolvency director at Debt Free Direct, said that some lenders were denying people IVAs even after a debt agency had concluded that this would be the best tool for the individual to manage their debt.

Mr Oakley explained: "What's much harder now is the attitude of lenders who are not as helpful in agreeing IVA deals and are becoming much, much tougher.

"[They] are denying access to an IVA, which we've assessed as the best solution for people, to quite a broad range of people and it's usually the people who need it most."

In addition, Mr Oakley explained that many people found themselves in need of an IVA because of "poor decisioning".

He said that this meant that people were unable to "assess the impact of decisions they're making or the borrowing decisions that they're making and whether they're able to afford things".

Recent figures from the Insolvency Service showed that over 10,000 people took on an IVA in the second quarter of 2007

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