PHILIP A BECK
Chartered Accountant
Licensed Insolvency Practitioner

41 Kingston Street, Cambridge CB1 2NU
Tel: 0800 1953605 (Free call) or 01223 367022
Fax: 0844 5048737
email: pbeck@ntlworld.com

IVA

IVA - I run a business.  What will happen to it ?

If you were to be adjudged bankrupt, then if your business was anything more than a one-man self-employed operation using only "tools of trade", it would be closed down as a result of the bankruptcy with the employees being made redundant and the assets realised.  A self-employed trader using no valuable assets in his occupation would be allowed to continue, so long as he continued to trade in the same name and style as that in which he was adjudged bankrupt.

If your business is a limited company then it is even more important to avoid bankruptcy, as bankruptcy will mean an automatic disqualification from acting as director or in the management of the company.

Under an IVA you can propose to continue trading the business in order to provide funds with which to pay off the creditors.  Creditors are very wary of this, as it will usually mean obtaining further business credit facilities during the course of the IVA and assets that would otherwise be sold to provide funds for a dividend will be retained by the business in order to operate.  You would need to convince the creditors that despite previous financial difficulties, these had now been resolved and that the business was fundamentally profitable.  This would involve the production of a business plan with cashflow and profit forecasts to persuade creditors that the business can survive and generate an income sufficient to pay them. No creditor will support an IVA proposal reliant upon the continuation of a business if he does not consider the business itself is sound.  In particular, the Revenue and Customs will not support such a proposal if excessive arrears of PAYE deductions and VAT have built up.

Philip Beck is a Chartered Accountant and Licensed Insolvency Practitioner operating since 1996 with substantial experience in undertaking IVAs.

No approval, no fee IVA, click here for details.  Pay nothing until creditors approve your IVA proposal.

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IVA Questions and answers.

I have serious debt problems. What are the options ?

How do I know whether an Individual Voluntary Arrangement (IVA) is the best answer to my problems ?

How do I work out how much I can afford to pay per month ?

OK I'm considering an IVA . How does it work ?

Do I have to attend meetings, or can this all be done by correspondence ?

What do creditors expect from it and how likely is it they'll accept it ?

Are all of them forced to accept the majority decision ? I've got one hell bent on making me bankrupt.

What happens if they don't like the deal ?

If the IVA is rejected, do I owe you anything ?

I've buried my head in the sand, now I've got a bankruptcy petition hearing next week. Is there something that can be done at this late stage ?

Will it really write off all of my debts ?

Will I live in poverty for the duration of the IVA ?

What if I win the lottery or get a big pay rise ?

Will it appear in the newspapers ? Will people know about it ? Will I ever be able to get credit again ?

Is an IVA more expensive than just going bankrupt ?

What will happen to my house, furniture, car and domestic effects ?

I run a business. What will happen to my business ?

I'm a professionally qualified person. Will I lose my livelihood ?

My partner has no debts, and I'm living with him/her. Will he/she have to contribute to the IVA ?

My partner and I have joint debts. Can we lump them all together in the same IVA ?

How do you get paid ? What does this all cost ?

There are plenty of Insolvency Practitioners or debt advice companies around. Why should I instruct you ?

What happens if I'm unable to keep up with the payments ?

What happens at the end of the arrangement ?

What other web sites do you suggest I look at for bankruptcy/IVA advice ?

Please note that this site deals only with personal insolvency law in England, Wales and Northern Ireland. By law, only a Licensed Insolvency Practitioner can undertake an IVA for you. If you need an Insolvency Practitioner in Scotland, visit The Institute of Chartered Accountants of Scotland.   Interested in members voluntary liquidation ?

Copyright © Philip Beck Insolvency Practitioner, Cambridge UK, 2005. Bankruptcy and individual voluntary arrangements explained. Free IVA Advice. How to avoid bankruptcy with an Individual Voluntary Arrangement. Debt, debt advice, debt management, debt consolidation.