Self Employed

[IVA Help]

Hi I am currently self employed and looking at entering into an IVA. The problem is I have heard that if I do I can not take out any further business related debts. Is this correct?

If this is true I do not see how I can continue to trade so how can I do an IVA?

Please help.[:(]

[MelanieGiles]

Hi IVA help and welcome to the forum

You are allowed to take on business credit during an IVA, so long as it is in the normal course of trading and is paid within terms. You would also need to let your suppliers know that you are subject to an IVA process.

Don't worry - there are hundreds of self-employed traders in IVAs at the moment, happily trading with their suppliers on such terms.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jpj]

Im self employed and I was told I could take out no borrowing on my business whilst i was in an IVA ! plus once your in an IVA, your credit file is so shot to pieces nobody would lend me a penny anyway!
Barclays even closed down my business account when I mentioned my IVA!

[Adam Davies]

Hi
Borrowing NO,but standard business terms,normally 30 days,is fine.You should have customers that owe you money within the same term time and this,plus any stock,should cover your liabilities.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[jpj]

On one page of my IVA it said "it is envisaged that the IP will not get involved in JPJs business affairs" then on another page it said " JPJ is to take out no business borrowing whilst in an IVA"
Basically due to the nature of my business it has practically closed it down!
I would warn anyone who is going into an IVA with a business to double check what you will and will not be allowed to do!

[MelanieGiles]

What an inflexible way of running an IVA for a self-employed trader. I would not class normal trade credit at business borrowing, and suggest you clarify this position with your IP, or find one who is more familiar with dealing with the self-employed.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jpj]

Well Melanie, luckily Im still sorting out my full and final so not too worried about clarifying it at present! Gave all my paperwork over to my Ip 3 months ago..still waiting for my full n final proposal to be sent to me and my creditors despite calling weekly! nearly there though I hope!!

[IVA Help]

Thank you all for your help, I will speak to my IP about this before I make a final decision. Thanks again!

[ray_a]

Good Luck with your IVA and my only comment would be is to get a basic bank account in your own name just in case you have a problem with your present bankers.