As the owner of a business in financial difficulty it is
likely that you have built up large personal debts which you will be struggling
to pay-if you are not able to draw an acceptable salary from the business. As
well as looking at solutions for your business debt we can also help you to
decide options for your personal finances. One option that will often make
sense is an IVA-Individual
Voluntary Arrangement
What is an IVA
An IVA is a legally recognised arrangement whereby a private
individual agrees to pay off a percentage of unsecured debts to creditors over
a period of time. The arrangement takes account of any reasonable personal
expenses you may have and at the end of the agreed period allows for any
remaining debt to be written off
How do I put an IVA in place
An IVA is negotiated on your behalf by a licensed insolvency
practitioner-who will negotiate an agreed percentage of your debts to be paid
to creditors. Payments are normally paid monthly up to a period of 5 years and
are based on your regular income taking account of your personal expenses and
the administration costs of the Insolvency practitioner.
Based on information about your personal circumstances and
income, the Insolvency Practitioner will make a proposal to your creditors or lenders
for payment of a percentage of all unsecured debts. The creditors will hold a
meeting with the Insolvency Practitioner, if 75% of creditors by value of debt
agree to the proposal then the IVA can be put in place
What will my monthly IVA payments be based on?
Quite simply, your income less your normal living
expenses-the remaining sum will be paid into your IVA
How much does it cost?
Fees can be included in your monthly IVA payment
Who can set up an IVA
Any UK resident with unsecured debts-such as credit cards,
loans, store cards, outstanding tax. You will need to be able to evidence a
regular income. The IVA can be set up individually or with a partner if couples
have joint debts
