IVA’s were actually introduced to help the self employed business person avoid bankruptcy and continue trading and so they are an ideal debt solution for the self employed.
Because of the varied nature of businesses, however, care has to be taken in the manner in which the IVA is set up and so it is essential to take the early advice of an Insolvency Practitioner who is the only type of advisor who is likely to have the knowledge and experience to be able to properly advise you.
Producing realistic trading forecasts on which your self employed earnings can be based.
There are special rules for the manner in which self assessed tax is treated in IVA’s although any debts owed to HMRC can be dealt with in an IVA. The effect of tax has to be understood and planned for within the IVA.
If business debts are to be included in the IVA what effect will there be on the trading business?
What effect will there be on the business with any restriction on available trade credit?
If the business trades from leased premises what effect would an IVA have on your relationship with the landlord?
Are there any contractual issues that need to be considered?
Are there any specific industry issues that need to be considered?
“I’d like an IVA to avoid bankruptcy, but I don’t know if it’s a feasible option”