Can an IVA help businesses?

Who can be helped by an IVA?

An Individual Voluntary Arrangement (IVA) is available as a solution for money problems to all individuals (private consumers), Sole Traders in business, Partners in businesses – all those who are experiencing pressure from creditors and who recognise that they are unable to meet the payment commitments required of them through their Consumer Credit Agreements.

It is particularly useful for those people who own their own homes and who wish to avoid the possibility of bankruptcy through which they would risk the loss of their home.

In difficult economic times, such as those we are currently experiencing, business owners can find trading conditions very tough, suffering problems with their businesses, falling behind with the settlement of their debts, both of the business and their own personal debts. Where the business owner, sole trader or business partner believes that their business can still be profitable if they can come to arrangements with their creditors, or that the business will be profitable in the future, an IVA can give them the breathing space they need to turn around the business through giving them some protection from legal action, and agreeing a payment arrangements that is affordable.

With bankruptcy being an avenue available to creditors who are owed more than £750, many businesses fail through appropriate arrangements not being put in place where possible, as a result of creditors pushing debtors into bankruptcy with the business subsequently ceasing trading.

Many business professionals, such as those in the legal profession, accountants, even staff in HM Revenue & Customs, find an IVA a good solution for their money problems as this helps them avoid bankruptcy and potentially a breach of employment contract which would render them out of a job.

Similarly, employees of HM Armed Forces, Police Service and Prison Service find themselves at risk of breaching their contracts of employment if they succumb to bankruptcy and therefore an IVA is a great solution where they fit the criteria.