www.iva.co.uk

Hi
I’m currently working as an electrician for a company. I would like to go self employed next year and go at it alone! Obviously I’m going to need a van etc to set up.
What are the complications with this? Does it really affect the whole iva? I’m only 1 year in. Part of me wishes I could pay it off early! I just want to get on in life but keep feeling like this is pulling me back! Any help or advice much appreciated. Also I will need accounts for wholesalers? Anyone had experience with this?

It might feel like the IVA is holding you back -- but in 4 years you will be debt free --- the unpayable debts would have held you back much longer.

Going self employed will affect the IVA in so far as you will need to make sure that you can make the agreed payments.

As a sole trader you will not be able to open credit accounts with suppliers and would need to work on a cash basis with them. Getting a van could also prove problematic and would need the permission of your IP first --- then the agreement of any lender ( your credit record will be shot). Even forming a limited company might not help as with a new company suppliers and lenders will still look to the Directors for credit-worthiness as the company will have no track record upon which they can base a decision.

Hi, I’m a qualified electrician and I’m thinking of going self employed next year.
With this I will need a van and some sort of budget for insurances etc. Also will need account with wholesalers...
Can anyone help with advice on starting up your own buisness whilst on an iva? I’m 1 year in and I feel like I need to do this now or I never will! Just worried about the paperwork with the iva side of things.

Topics merged.

Sat Jun 20, 2020 6:21 pmFoggy wrote:

It might feel like the IVA is holding you back -- but in 4 years you will be debt free --- the unpayable debts would have held you back much longer.

Going self employed will affect the IVA in so far as you will need to make sure that you can make the agreed payments.

As a sole trader you will not be able to open credit accounts with suppliers and would need to work on a cash basis with them. Getting a van could also prove problematic and would need the permission of your IP first --- then the agreement of any lender ( your credit record will be shot). Even forming a limited company might not help as with a new company suppliers and lenders will still look to the Directors for credit-worthiness as the company will have no track record upon which they can base a decision.

What if I was to find a way off paying off the iva? Would that then free up my credit score more ? I mean I wouldn’t have to ask them about buying a van etc so would help in that sense.

If I can’t buy out of my iva there’s no point going self employed is there?

Your credit score would remain the same.

You could make a full and final offer to close the IVA early --- this would be based on the number of payments remaining and could be rounded down a little. This would get you off the insolvemcy register, but the IVA will remain on your credit record until the 6th anniversary of the start date -- basically crippling your credit-worthiness for that time. You would not need the IPs permission to get a van, but might still struggle to get the credit and, of course, the worry of making the IVA payments would be removed.