I am thinking of doing an IVA as my DMP will take 20 years to clear and this shows no light at the end of the tunnel. The questions I have is this. I am trying to get a little business up and running, and I dont kno how this would be effected in an IVA. I would not be taking any money from the business as any small profits would go into growing the business to try and realise profits in the future - but I am not sure what effect the IVA would have on this (i,e am I allowed to setup a business, would creditors want any profits made regardless of me leaving the money in the business to try and grow it etc etc ) Obviously if the answer to the latter is ye then there is no point setting this up so would appreciate some advice. Thank you all in advance
There is nothing to stop you setting up a business whilst in an IVA, so long as you can maintain your current IVA payments at the contractual level - which it sounds as if you can.
The income from your business will need to be reviewed annually by your IP, and you will need to register with HMRC for tax purposes. If the business starts making profits then an element of this money - perhaps 50% will need to be paid into the IVA.
Personally I would not put my plans on hold until the IVA has concluded. Running your own business can be immensely rewarding, and once the IVA has concluded you could have a well-established income generator which you can then benefit entirely from.
You can set up a business, but you would obviously need to be able to make contributions into an IVA. What would you be living on whilst setting up the business?
I would speak to a professional. Visit www.iva.com for a list of companies and reviews and give one or two a ring. The advice is free and impartial.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
