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Self-Employed IVA

An Individual Voluntary Arrangement (IVA) may be the best solution for you if you are self-employed. In many circumstances it will mean that you avoid bankruptcy and can continue to trade with your business, but it is certainly worth calling our debt advisors to check if this is the best solution for you.

The Benefits of a Self-Employed IVA

When a IVA is entered into, the charges and interest owed will be frozen, and as long as you adhere to the obligations of your plan there not be any further demands from your creditors. The IVA will however stay on your credit history for five years making it difficult if not impossible to apply for further credit. When you come to the end of your IVA, any outstanding payments will usually be written off.

If you are self employed and can not maintain the regular payments required by a self-employed IVA, it is important to raise this with your case officer from the outset. The nature of the IVA agreement is a formal and binding agreement, and missing even a single payment will be in breach of the agreement. As a self-employed person, you should be absolutely sure that any fluctuations in your business’ operation will not prevent you from making your contractual payments towards your IVA.

In some instances, creditors will accept reduced payments against an IVA if there is a good reason for them such as seasonal revenue fluctuations, but this will only be allowed if it is requested up-front in your agreement. When you speak with a Creditfix advisor, you should ensure you have information on your seasonal business performance to hand, as we may need to provide this to support your case.

By taking out an IVA you could help to stabilise your business and focus on ensuring you maintain revenues and profitability. So an IVA could be an alternative solution to bankruptcy for your business – however you should contact Creditfix to speak with one of our advisers and see what the best debt solutions are for you and your situation.

Bankruptcy as an alternative

Another alternative to an IVA if you are self-employed is bankruptcy, although usually a self-employed IVA is a more practical and workable solution. All situations are different and you should talk to a Creditfix advisor for the best solution to help you and your business.

If you are considering bankruptcy, you need to know that there are significant restrictions.

  • You are not permitted to create, manage or promote a business without permission from the court
  • The court needs to give you permission if you wish to act as a director of a limited company
  • You can not run any other business with a different name unless you advise everyone you deal with that you are bankrupt
  • You will be limited to credit of £500. Any additional credit means that you will need to disclose that you are bankrupt.

Bankruptcy will also affect your existing business, in that any assets of the business may be required to be sold to pay off debts, and any finance agreements will probably be terminated.

If you and your business are considering bankruptcy you should contact Creditfix and we can ask you about your situation and find the best debt solution for you.

Self-Employed IVA Help & Advice

If you think that a self-employed IVA could be the right solution for you then call us now for immediate and confidential free debt advice on 0808 208 5198 or complete the form. We can start to work through your debt problems as soon as you contact us. An IVA is only available to residents living in England, Wales and Northern Ireland. If you’re currently living Scotland you may be eligible for a Trust Deed.

Do you have over £5,000 of debt? Call today and find out how we can help.

Advantages

  • Allows you to protect your assets
  • You can continue trading
  • You will still have control over your finances

Disadvantages

  • You may be required to release equity from property
  • Your creditors do not have to agree to your IVA