Pros And Cons Of A Self-Employed IVA
If a self-employed IVA is arranged the interest and charges the client faces will be frozen and, if the terms of the IVA plan are met, there will be no further calls or letters from their unsecured creditors - with all their unsecured creditors bound by the terms of the IVA. The IVA plan will appear on your credit history, and will require you to make regular payments for a period of, usually, five years. Upon completion of your IVA plan, a significant proportion of your debt will be written off.
Important Considerations Of A Self-Employed IVA
Any IVA is usually a five year agreement that requires you to make an agreed regular payment for the entire term of the plan. Any missed payments could lead to the failure of the IVA, which means interest and other charges may be re-applied. However, if you can't afford the same level of payments into your IVA plan due to fluctuations in your business, you can speak to your Case Officer who could request that creditors accept reduced payments.
After the IVA is arranged it is reviewed regularly throughout its life span, and all assets must be declared; for example creditors will expect any windfall or inheritance to be paid into the IVA plan.
Although an IVA isn't published publicly, it will show up on the client's credit file.
Fluctuations In Business Cashflow
The contributions you make to your IVA plan are based on your ability to pay and then maintain the payments. The plan can be modified throughout its term, and elements such as fluctuations in business will be taken into account; so if your business experiences a downturn in trade then it is possible for us to ask creditors to reduce the payments accordingly. When a self-employed IVA is set up it isn't published in local papers, as can be the case with bankruptcy, and this allows you privacy during your financial difficulties.
When the self-employed IVA is completed, usually after a fixed period of five years, any outstanding debts will be written off. As Payplan ensure you're making affordable payments into your IVA plan, your business's financial position can be stabilised and you can focus on a more positive financial future, whilst also benefiting from all our help and advice regarding better financial management.
Bankruptcy vs Self-Employed IVA
A self-employed IVA may be a more practicable option than bankruptcy - indeed, often our clients aren't even aware that a self-employed IVA exists as a solution for them. Either way, we always do our best to ensure that all our prospective clients are aware of their options before deciding on the best route to take.
If you are considering bankruptcy, this can have a major impact on your future plans, for example:
- You cannot act as a director of a limited company
- Credit will be limited to £500
- Any business assets may be sold
- Finance agreements may be terminated
- Bank accounts may be frozen.
With a self-employed IVA you can:
- Continue trading as normal
- Retain your business assets
- Garner little (if any) publicity
- Continue with your finance agreements
- Have more control of your finances.
Self-Employed IVAs - What Next?
As a next step, contact Payplan for free & immediate advice regarding self-employed IVAs. There may well be a number of debt solutions that are appropriate to your needs. Telephone free on 0800 280 2816 or use our debt help form, and your free debt help can begin straight away.
Unlike so many other debt management companies, here at Payplan we don't charge our clients any upfront fees for debt solutions such as Individual Voluntary Arrangements and Debt Management Plans, instead we receive our income primarily from the credit industry.
That is, your creditors recognise that our debt solutions are a sustainable and realistic strategy in getting you debt-free, and agree to arrangements that will typically complete with no fees charged to you.
