Can person under IVA be Company owner?

[77dept]

My questions:

1. Do you need to have a full time job to start IVA?

2. Can you be co-owner or company owner when you are in the middle of IVA?



butt in the fly-butterfly

[MelanieGiles]

Hi 77dept

You do not need to have a full time job, but you will need to demonstrate a regular income flow if you are going to propose a contributions based IVA.

and

You can be a shareholder in a limited company whilst subject to voluntary arrangement proceedings.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[ray_a]

Following from that I am in the same position with my own business.

You have to be careful though as my income tended to fluctuate though and that made it difficult to make the normal monthly contributions.

The tax issue can also make it quite difficult as well.

I would suggest that you look at the business and tie your income stream to your personal needs and see whether an IVA can work. Do look at the regularity of sales and is your customer base is strong and can maintain a good cash flow. You also need to be careful as the economy is slowing down and you could face some bad debts as well which would of course affect your personal cash flow.

I think a good IP is crucial here to see which is the best proposal.

Hope this helps and good luck

Ray

[MelanieGiles]

With all of my self-employed clients, I always write a "three month leeway" provision into the proposal to take account of peaks and troughs in trading. So if your contributions are say £400 per month, I would write that you are compliant so long as you made payments totalling £1,200 per quarter. This gives the flexibility required by self-employed people, and helps to prevent IVA failure.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk