Self-employed IVA – prioritising trade suppliers

An Individual Voluntary Arrangement (IVA) is normally a five-year agreement with your creditors that helps you avoid bankruptcy. You get protection from your creditors and you only pay back a proportion of your unsecured debts and write the rest off.

If you’re worried about your debts, PayPlan can help you. You can call us now on 0800 280 2816 or, if you’d prefer, click the “Get advice now” button to request a call back.

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PayPlan help all kinds of people in debt

Over the last twenty years, PayPlan have helped millions of people who were having difficulty in paying their debts.

Everyone’s circumstances are unique, and our experienced advisers will be able to suggest next steps for you no matter what your financial situation.

This page outlines a very specific case study: where a self-employed client was able to avoid bankruptcy, and then repay only a proportion of his unsecured debts after we set up an IVA for him.

IVA case study – prioritising trade suppliers when self-employed

We helped a self-employed newsagent who owed over £60,000 on unsecured loans, credit cards and store cards.

He was worried that in the event of bankruptcy, he would not be able to trade as his shop lease contained a clause which meant he would lose his shop in the event of bankruptcy. He also owed money to two of his key suppliers and was worried that if they stopped supplying, it would affect his ability to trade.

We firstly assisted the client with compiling a 12-month cash flow for his business. We achieved this by meeting in person to discuss his income and examine his bank statements and accounts. After the client’s business expenditure and personal living costs were taken into account, he could afford to make a monthly payment of £250 to his debts.

The suppliers agreed for their arrears to be included in the IVA, and they also agreed to continue to supply in future, providing he paid cash on delivery. We then arranged an IVA for the client, which allowed him to retain his lease and continue trading. All tax arrears were also included in the IVA.

Creditors agreed to write off £45,000 of his unsecured debt and reduced his monthly debt payments by more than £1,200.

An IVA may help you if you’re self-employed and need to prioritise making payments to trade suppliers

Are you serious about getting out of debt?

Successfully completing an IVA means avoiding bankruptcy and not having to deal with any more unsecured creditor demands for payment. You’ll normally make just one affordable payment for a set period of time, and creditors included in the IVA must freeze interest and charges at the point your IVA is agreed.

Become a PayPlan IVA client and you get:

  • A personal debt adviser to handle your IVA case
  • Just one regular payment to make, based on what you can afford to pay
  • All the support of a company who have, over the last twenty years, helped tens of thousands of people achieve debt-free status through an IVA
  • After the agreed IVA period, whatever unsecured debt remains is written off

And remember, at PayPlan, we do not charge any upfront fees for setting up an IVA.

However you must bear in mind that if you were, for whatever reason, to stop making payments to your IVA then your plan may fail; in which case your creditors may re-apply interest and charges (which were frozen at the point your IVA was approved) or may even petition for your bankruptcy. 

Want to avoid bankruptcy? Think an IVA could help you manage your debts more affordably? Many people choose to call us on 0800 280 2816 for free no-obligation debt advice, while others prefer to fill in our online Debt Help form so we can call them back.