IVAs can be a really useful rescue tool for the self employed who, for whatever reason find themselves with debt problems, whilst running a viable business that has a future.
(PRWEB) February 24, 2008
NancollasGreer, IVA specialists, are often asked if self-employed people do an Individual Voluntary Arrangement? The short answer is yes.
When IVA legislation was written in the mid 1980s it was intended that an IVA would be used as a rescue tool to preserve businesses, both sole traders and partnerships, who up until then only had bankruptcy as a method for dealing with debt. Back then no one anticipated that it would be used for dealing with consumer debt to the extent that it is today.
An IVA can be a suitable for the self-employed however it does often require a greater amount of preparatory work than a straightforward consumer IVA and many of the larger IVA "factories" will not be geared up to deal with anything other than a straightforward IVA. This is where a boutique firm like NancollasGreer come into their own. The legislation demands that an IVA must be administered by a licensed Insolvency Practitioner (there are about 1,300 who take insolvency appointments in the UK today). NancollasGreer Insolvency Practitioner, Sarah Nancollas, has over 22 years insolvency experience and has been undertaking IVAs since the legislation was first introduced and has a vast knowledge of IVA solutions for the self employed.
Sarah Nancollas said "IVAs can be a really useful rescue tool for the self employed who, for whatever reason find themselves with debt problems, whilst running a viable business that has a future."
As HM Revenue and Customs are likely to be a creditors one of the first steps is to ensure that any late accounts or tax returns are brought up to date and filed with HM Revenue and Customs as soon as possible. As a creditor they will almost certainly vote on the acceptance or otherwise of an IVA proposal. H M Revenue and Customs have issued guidance notes which state that they will vote in favour of IVA proposals where:
- An optimised and achievable offer is made to the creditors.
- Provision is made for payment of all future debts on time.
- All creditors within the same class are treated equally.
- There are no exceptional reasons for rejection.
- You make full and honest financial disclosure
The above are no different to the requirements of many lending institutes and most of the above are required by the legislation to form part of an IVA.
Being self-employed you will need to demonstrate to your creditors, your ability to earn a living, with the use of up to date accounts.