Sole Trader Debt | IVA
What is an Individual Voluntary Arrangement (IVA)?
An IVA is a legal agreement between you and your creditors where you pay back a portion of the debts that you owe. Reduced payments are negotiated with your creditors at a sum that is affordable to you. These payments go towards the total percentage of debt that you owe to your creditors.
An IVA generally lasts for 5 years. After this time the amount of debt you have paid off is settled with your creditors and any remaining debts are cleared, which you will no longer be responsible for.
How does a Sole Trader get an IVA approved?
In order to set up an IVA, there are certain criteria that must be met. You generally need debts from over £15,000 and more than two creditors. It doesn't matter whether you are a tenant or a homeowner. Due to the nature of an IVA being a formal agreement, it is not something you can set up on your own. You will need a Licensed Insolvency Practitioner or a company that employs Insolvency Practitioners.
At BusinessDebtAdvice.co.uk our experienced Debt Advisors are happy to go through your situation on the phone to see if an IVA is the best debt option for you. We will do a detailed analysis of your situation, your income, your outgoings, your bills and debts and anything else that you like to discuss. Then, if we determine that an IVA is your best course of action and you decide that you want to proceed, then we will take the necessary steps, along with our highly qualified Insolvency Practitioners, to put your IVA Proposal in place and forward it to your creditors for negotiation. If all goes well here and at least 75% of your creditors agree to the IVA, then your IVA can be set up.
Benefits of an IVA for a Sole Trader
- Only pay back the debts you can afford.
- You will be debt free in 60 months or less.
- The debts that you cannot afford will be cleared.
- Your interests & charges are frozen & stopped immediately.
- Your will have no more creditor hassle. Your creditors will HAVE to go through us if they have any queries.
- It can be an effective alternative to Bankruptcy
- An IVA is suitable for indivduals, couples, families, businesses etc..
Apply for an IVA
Call Business Debt Advice 0808 186 9850
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