Small Business Debt

[MelanieGiles]

Are you saying that you could pay £1,500 to creditors each month, Ellie? If so, an IVA would definately work as you could pay off your creditors within four years. Or put the business on the market and sell it over an earlier period.

You really do need to now take specialist advice on these issues, as this is too complex to discuss on this type of forum.

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

[ellie 553]

Ok thanks Melanie ! I really appreciate the advice & I think that an IVA is the right thing for us to do. The whole bankruptcy thing would be more a result of our tiredness & emotions than a sound business decision - thats some thing we have both agreed. Now ready to take the next step and get it underway !
Will keep it posted & again thanks for all the advice !

[Scrooge]

Good luck Ellie - We are in a very similar situation to yourself but currently struggling in an IVA.

[ellie 553]

Thanks Scrooge - I know we would struggle with payments too
New business plan is being implemented next week, and I have contacted a local firm who recommended a F & F IVA based on the sale on the business.
We even have had a lot of support from staff and family over the last week - they have had a lot to take in as well due to reduced hours (staff) and the personal situation we are in (family)
We had a new enquiry about the business today so hopefully something will happen on that front soon.
Only questions I have are - the IVA firm have quoted a charge of £3-4000 to arrange this IVA for both of us - is this about right?
What do you tell creditors eg tax office while all the paperwork is being arranged (should be the end of Feb)
Finally - they have told us that this type of IVA would mean we make no monthly payments but agree a settlement figure at the outset, so if we agreed £120,000 what would happen if we got a lower or higher price for the business ?

[MelanieGiles]

The fees look about right, and the IP will deal with all ongoing correspondence with the tax office in the meantime. If you get a higher or lower price that will ultimately affect the amount you will have available to pay into the IVA.

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

[ellie 553]

Thanks Melanie - it all seems possible but anything is really & I couldnt have done this without this forum & your advice x

[MelanieGiles]

Good luck and do let us know how you get on.

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

[ellie 553]

Well we saw the Insolvency Practitioner today and had a long talk about our situation.
His advice was to arrange an IVA based on a full & final settlement on sale of the leasehold. He included the dti SFLGS loan in the total figure & came up with total debts of £165,000. He said we would need to sell for around £100,000 to achieve an acceptable final settlement.
Their charges are £500 up front, £500 after the creditors meeting & £2-3000 to supervise the IVA. I have read not to pay upfront fees but that is their condition. He said he was very very confident that the IVA would be approved & should be done by mid to late Feb.
We cannot act until the house sale completes on Jan 30th and also til then we cannot pay him £500 as that will come from the house sale (its either that or use it to go bankrupt)
Does all this sound about right?
Also a more trivial question - is there any way we can continue taking credit card payments / have a cheque book or direct debits while in an IVA - lloyds tsb are our current bankers and we owe them the DTI loan only (they administer it on behalf of the DTI)- would they let us keep our bank account?