Self-Employed IVA Process

A self-employed Individual Voluntary Arrangement (IVA) is a significant debt solution that can help you continue trading, avoid bankruptcy, and ultimately pay off only a proportion of your unsecured debts. Here’s how we at Payplan can help you.

After speaking to a PayPlan specialist about your debt, you’ll complete a full debt counselling session to ascertain that a self-employed IVA is the right debt solution for your needs. If a self-employed IVA is right for you, we will refer you to our associated company, PayPlan Bespoke Solutions. They aim to meet most of our clients face-to-face to explain their debt resolution options and to assess their business viability before they set up a self-employed IVA. The meeting can either be in PayPlan’s offices or at a location nearer to the client’s home.

Self-Employed IVA Process – Debt Counselling Session

We look at both the business’s debts and your personal finances – your income, expenditure, assets and creditors – and then work together to establish an income and expenditure for the next 12months. PayPlan Bespoke will then present this proposal to show the creditors that the business is viable and an IVA will be a sustainable debt solution for you to enter into.

All our self-employed IVAs take into account any seasonal fluctuations in the business, which provides necessary flexibility in the proposal and improves the sustainability of the IVA plan submitted to the creditors.

Self-Employed IVA Process – Full Support

Once a self-employed IVA is arranged, PayPlan Bespoke Solutions will assign an experienced case officer to you so you always get the support you need, and have a constant point of contact should you have any problems.

Self-Employed IVA Process – Suitability

If a self-employed IVA isn’t the most appropriate option, we will assess your situation to see if an alternative solution is more appropriate.

Each situation is different and we will always look at the individual case to help you choose the most suitable option.

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 316 1833 or use our debt help form, and your free debt help can begin straight away.

FAQs

How would a tax rebate be treated in a Self-Employed IVA?

If you’re due a tax rebate for either a tax year prior to the approval of your Self-Employed IVA, or for the tax year in which your Self-Employed IVA was approved, HMRC will – in many cases – either send the rebate directly to your Supervisor or offset it against the outstanding balance on your HMRC account.

What if I lease my business premises?

You may still be able to trade from leased premises if you enter a Self-Employed IVA.

However, there are a couple of things you’ll need to do:

Read the lease agreement carefully. In some cases, the lease may state that it’ll be terminated if you enter an IVA or bankruptcy. If your lease does state this, discuss your financial situation with the landlord of the property, and ask whether they’ll actually use their right to terminate the lease if you enter a Self-Employed IVA. If they agree not to terminate the lease, it’s important to get confirmation of this in writing.
Check that you aren’t in arrears with payments under the lease agreement, as this could result in the landlord not allowing you to keep the property.

There will be an allowance in your cashflow to make your lease payments when they fall due – plus repayment of any arrears – so the landlord can see that you intend to keep up with your payments.

Even if the above termination clause is in your lease agreement, the fact that you’re taking action to deal with your debts may convince the landlord to ignore this and allow you to continue trading from the premises.

What if I can’t afford payments?

Payments can be adjusted monthly based on your business cashflow. If you struggle, contact your Supervisor as soon as possible as they may be able to arrange a payment break or reduction.

What is the Insolvency Register?

Your name will be listed on this public register during your and for three months after your IVA completion, but it’s primarily accessed by creditors and lenders.

How does the IVA affect my credit rating?

Your IVA will stay on your credit file for six years, affecting your ability to borrow. After completion, it will be marked as complete on your file.