Sole Trader | IVA

Sole Trader IVA | Individual Voluntary Arrangement

What is an Individual Voluntary Arrangement (IVA)?

An IVA is a legal agreement between you and your creditors where you only repay the debts you can afford. Any remaining debts left upon completion of the agreed repayment plan are legally written off by your creditors and you are no longer responsible for them.

-Total Debts over £12,000 (can include tax debts)
-2+ creditors
-Struggling with repayments?
-Suitable for Self Employed people.
-Repayment is based on affordability after all your living expenses have been taken.

An IVA generally lasts for 60 months (5 years). In some circumstances however, an IVA can be completed in a few months, but this would normally involve introducing a Lump Sum into the IVA, hence the name Lump Sum IVA.

IVA case example for one of our clients

Total Debt: 83,050 (including 24,000 to HMRC)

Solution opted for after consultation: IVA

Payments: 390 for 60 months

Total paid towards plan (including fees): 23,400


Business Debt Advice are experts in Business IVAs

We have successfully proposed 1000s of IVAs on behalf of Sole Trader, Self Employed individuals and business partners. We have a very high acceptance rate for this type of case.

To enter an IVA you need a licenced Insolvency Practitioner. Business Debt Advice have four full time Insolvency Practitioners who can propose an IVA on your behalf. Unlike other companies we do not charge any inital payments to you for putting your IVA forward. Fees are only payable if your IVA is accepted and approved by your creditors and these fees are taken from your affordable monthly payment.

We are also one of the few IVA providers to specialise in business IVAs. This type of IVA generally involves dealing with HMRC, complicated tax affairs and trade creditors which is more complex than an average IVA.

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 £12,000 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.

At our experienced debt advisors are happy to go through your situation to see if an IVA is the best debt option for you. We will carry out a detailed analysis of your situation, income, outgoings, 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, we will take the necessary steps, to put your IVA Arrangement in place and forward it to your creditors for negotiation. If at least 75% of your creditors (by debt balance) agree to the IVA, then your IVA will be approved and will be legal.

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You can also call us on 0800 0436 999 for expert debt advice for you and your business.You can talk about your debts with us for free, in total confidence and with no obligation.


Benefits of an IVA

  • 1 easily affordable monthly payment based on your income and expenses
  • Unlike some of our competitors, we do not charge any Upfront Fees, saving you £100s
  • An IVA offers you protection from creditors
  • Creditor pressure stopped as creditors must deal with us
  • Can be complete in as little as 1 year
  • All interest frozen immediately
  • Suitable for tenants or homeowners, individuals or couples, and even business owners
  • We can setup an IVA in as little as 4 weeks
Disadvantages of an IVA
  • If you are a homeowner with equity in your property you may be required to introduce part of your share of this equity in the final year of the arrangement. A remortgage may be restricted and on less favourable terms. If you can’t get a remortgage your arrangement can be extended for up to another year.
  • If your circumstances change, and your insolvency practitioner can’t get creditors to accept amended terms, the IVA is likely to fail. You will still owe your creditors the full amount of what you owed them at the start, less whatever has been paid to them under your IVA.
  • If your IVA fails, your creditors may request that you be made bankrupt. This will always be discussed before your arrangement commences.
  • Your credit rating may be impacted for up to six years from the commencement of your IVA.
What living costs are allowed in an IVA?

In an IVA you will have an agreed budget for your all your personal living costs. There are allowances made for this in the agreement. These expenses will be mostly based in what you currently have to pay out each month. You should declare all normal monthly expenses to your creditors so they understand your situation more clearly. There may be some restriction on some expenditure items, such as mobile phone for example.


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Sole Trader Debt Solutions


An IVA is a legal agreement between you and your creditors where you pay back a portion of the debts that you owe. In an IVA you can be debt free in 5 years or less.

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Debt Consolidation

Debt Consolidation is a method used by many people to consolidate their debts into one lower affordable payment.

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For more on IVAs…Call our Business Debt Advice line on: 0800 0436 999

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About us

Business Debt Advice is owned by McCambridge Duffy who are one of the leading Insolvency firms in the UK and have been in the financial industry since 1932. McCambridge Duffy solely provide IVAs and other Insolvency solutions.

On our site you will find information on debt solutions, both formal and informal. We provide this information so you have a clear overview of the options available for dealing with your debts. We do not offer informal debt solutions, so if an insolvency solution is not your recommended course of action, with your permission, we will refer you to an appropriate agency/provider that can assist you further.