What information do I need to provide for an IVA as a self employed trader?

There seems to be a misconception that self employed people are not able to enter into IVAs, yet the original purpose of such an arrangement was to assist such individuals to carry on trading.

Whilst most people are in jobs that pay a regular, stable salary on an agreed date each month, life as a self employed person is not as straightforward! They will receive income only when their business generates enough to cover all of the business’ expenses and has some left for the business owner. Income for businesses can change from one month to the next, and this will be a factor in considering whether or not an IVA is a viable solution. Where this income is uneven or unpredictable, we need to ensure this is understood by the creditors.

In order to understand the business and how this affects a potential IVA, you will need to be able to provide the following pieces of information as a starting point:

· Historic trading accounts, preferably for the last 3 years.

· Detailed forecasts of Profit & Loss Accounts and cash flows.

Many self employed traders do not distinguish between business and personal expenditure, and you will also need to provide copies of your personal and business bank statements as part of the review of your Income & Expenditure.

With an understanding of the way the business works, the IVA Proposal can be worded to take into account any relevant factors, and contributions can be structured so that these can be accommodated from cashflow.