What’s the difference between a Self-Employed IVA and a regular IVA?
- A Self-Employed IVA can adjust monthly payments to match your business cashflow, especially if your income changes seasonally.
- You can prioritise payments to certain creditors (like key suppliers) to keep your business running, which isn’t usually possible in a standard IVA.
- You’ll create a 12-month business budget to show creditors your arrangement’s sustainable – this isn’t required for a regular IVA.
- You’re more likely to be allowed further credit over £500 in a Self-Employed IVA if it’s essential for your business, provided you can afford it.
What debts can I include in a Self-Employed IVA?
Most unsecured debts can be included, such as:
- Bank overdrafts, loans and credit cards
- Store cards and catalogue debts
- Council tax arrears
- Payday loans
- County Court Judgments (CCJs)
- Utility bill arrears, including gas, electricity and/or water
- Loans from family or friends
- HMRC debts (including benefit overpayments)
Debts usually not included are:
- Mortgages and secured loans
- Hire purchase (HP) agreements
- Court fines (like speeding tickets)
- Student loans
- Child support arrears
- Any debts incurred after your IVA starts
Do I qualify for a Self-Employed IVA?
If you’re self-employed, live in England, Wales or Northern Ireland, and can afford to make a monthly payment to your debts, you may be eligible for a Self-Employed IVA. If you live in Scotland, you might qualify for a Trust Deed, which is a similar solution – check the differences here.
What is a Self-Employed IVA?
Will bankruptcy affect my ability to get a mortgage?
Yes. Bankruptcy stays on your credit file for six years and can make getting a mortgage more difficult. Some lenders may also ask if you’ve ever been bankrupt, even after it drops off your credit record. You may need to wait, rebuild your credit or save a larger deposit to improve your chances.
Who will find out about my bankruptcy?
Your bankruptcy will appear on the Insolvency Register during the bankruptcy and for three months after. It’s also published in The London Gazette. Most people won’t see this unless they’re specifically looking, but lenders or employers may check.
Can bankruptcy affect my job?
It can, depending on your role. Some professions – such as the Police Force, Armed Forces or certain local government roles – may have restrictions. It’s important to check before applying.
What happens when my bankruptcy ends?
When your bankruptcy ends (usually after 12 months), any debts included are written off, and you’re no longer responsible for them.
What if I become seriously ill?
Please contact us as soon as possible. We know these conversations can feel difficult – but you’re not alone, and our dedicated Vulnerability Team is here to support you with care and practical guidance.
Your Insolvency Practitioner (IP) may speak to your creditors and request early completion of your IVA on compassionate grounds.
What happens if I come into money during my IVA?
If you receive a financial windfall – such as inheritance, compensation or lottery winnings – you’ll usually need to pay all of it into your IVA.
Because your creditors have agreed to write off part of your debt at the end of your IVA, any extra funds must be considered.
If the amount’s large, you may be able to offer an early Full and Final settlement.
If friends or family want to help with a lump sum, creditors may accept it as a settlement offer. It doesn’t have to cover everything you owe, but it must be fair and reasonable.