Plans to introduce simplified IVA rules into law have been shelved because of the success of guidance rolled out earlier this year, the Insolvency Service has said.

The IVA Protocol became available for use in February 2008 and has given providers and creditors a clearer picture of what is required of them.

'The successful operation of the IVA Protocol has resulted in many of the desired improvements in the IVA marketplace being implemented without the need for further legislation, a position which has become clear within the past few months,' the Insolvency Service said.

The Insolvency Service added that those in the industry had worked hard to streamline the process for IVA approval with far fewer changes now being proposed.

'It is now felt that the operation of the Protocol should continue to be monitored by the IVA standing committee, and that legislative change in this area should not be necessary as long as policy objectives are being met by non-statutory means.'