Individual Voluntary Arrangements
Individual voluntary Arrangements are used for sole traders and partnerships that business and trade debts getting out of control. Having built up debts with HMRC, my bank and have now maxed out my credit cards I am looking at a Debt Management Plan, IVA, Debt Management Order and possibly Bankruptcy – I need some professional, friendly and free advice!
A Self-Employed IVA is very simply, an Individual Voluntary Arrangement for a person that is Self-Employed.
An IVA is an agreement made between you and your creditors, that usually allows you to repay a percentage of your debts over 5-years. Under the terms of the IVA you will make a single monthly payment that you are able to afford for up to 5-years; at the end of the IVA term you will be debt free. An IVA is a formal process that can only be managed by a Licensed Insolvency Practitioner. In 2017, around 50,000 people had IVA’s approved in the UK; around 1,000 IVA’s per week.
Being in debt can be hell, and being in debt can suck the joy out of life. Don’t get us wrong debt can be great, when it is well managed and affordable it allows us to make important purchasing and investment decisions. The problem is too much debt is debilitating and leads to stress, illness and family breakdown.
Clients phone us looking for solutions, working long hours and trying to cope with repaying too much debt. Things get so bad they refuse to answer their phone frightened that the credit company or debt recovery agent will be making demands they know they will never be able to meet.
What is an Individual Voluntary Arrangement?
An individual voluntary arrangement (IVA) or VA is a formal insolvency process that helps an individual resolve significant debt whereby a deal with the unsecured creditors is proposed to repay the debt over a maximum of five years. The key advantage of an IVA is that it normally involves a substantial discount on the original debt of up to 80 %.
IVAs can be used as an alternative to personal Bankruptcy and are particularly suited to deal with sole trader businesses or a partnership suffering financial distress.
Voluntary arrangements are:
- Intended to encourage creative, flexible and practical ways to avoid liquidation or bankruptcy
- They encourage creditors to work with you to everyone’s benefit
- They allow a period of protection to implement improvements to business of personal cash flow
Losing your home and bankruptcy are not inevitable with insolvency. Even where your liabilities are considerably more than your assets. As any experienced insolvency practitioner will explain. The starting point is persuading creditors to agree to a practical and achievable individual voluntary arrangement (IVA). No more nightmares, just realistic help to get you back on track
Advantages of a Self-Employed IVA
- Continue running your business
- All legal action will be stopped, including CCJ’s and Bailiffs
- You will only make one, affordable monthly payment
- Your creditors will not be able to call you chasing payments
- Interest and late payment fees are frozen
- You are usually debt free in 5-years
- Once approved the IVA is legally binding on all creditors, even if some rejected your offer
Individual Voluntary Arrangement for Sole Traders
Business Insolvency helpline are in the business of second chances for sole traders and partnerships. We work on a one to one basis with our clients to ensure they get expert advice and options to get back in control of their finances and start living their life again.
We offer expert help from someone on the outside but someone to talk to that understands what you are going through and the whole process of restructuring your personal debts.
In addition to Individual Voluntary Arrangements we will be able to advise you on Personal Guarantee Debt Obligations, Debt Management Plans, Debt Management Orders and of course ultimately Bankruptcy, as well as being able to advise you of what to expect next at every step of the way so phone us today and start sleeping at night again.
You can trust us with your financial problems and we will always give you impartial advice that you can rely on so get in touch today to find out more. The best news is that we will even advise you completely free initially to get your problems resolved as quickly as we can.
Your insolvency practitioner works out what you can afford to repay and how long the IVA lasts. You’ll have to give details about your financial situation, for example your assets, debts, income and creditors. Your insolvency practitioner will contact your creditors. The IVA will start if the creditors holding 75% of your debts agree to it. It will apply to all your creditors, including any who disagreed to it. This helpline will assist you getting a good nights sleep!