Self-employed IVA: Write off unaffordable debts while keeping your business running

If you’re self-employed and finding it hard to stay on top of your debts, a Self-Employed IVA (Individual Voluntary Arrangement) could offer a realistic way to take control – without closing your business.

This debt solution helps you make affordable monthly payments based on your income, while protecting your business tools and assets. If approved, remaining unsecured debts can be written off at the end of the plan.

What is a Self-Employed IVA?

A Self-Employed IVA is a formal agreement between you and your creditors, arranged by an Insolvency Practitioner (IP), that helps you repay your debts over time – usually five or six years.

It’s designed to support people with variable or seasonal income who want to keep trading, protect their assets and avoid bankruptcy.

Key features

• One affordable monthly payment tailored to your income.
• Most remaining unsecured business and personal debts written off after the IVA ends.
• Protection from legal action, bailiffs and creditor contact.
• Interest and charges frozen.

Benefits

A Self-Employed IVA offers flexibility and stability, even when your income fluctuates:

• You can continue trading and keep your suppliers and stock.
• Monthly payments are based on your actual cashflow, not a fixed amount.
• A large portion of your unsecured business and personal debt could be written off.
• Business assets and tools are usually protected.
• No hidden fees – all costs are included in your monthly payment.
• You can still use credit for business needs (with oversight).
• Your home is usually safe, as long as you maintain secured debt payments.

Things to consider

• If your IVA fails, this could result in a petition for bankruptcy.
• If you own a property and have £10,000 or more in equity, you’ll be asked to make an additional 12 payments into your IVA, extending your IVA to six years rather than five.
• There are restrictions on your expenses when you enter an IVA.
• Your creditors may not agree to the IVA, as this isn’t a guarantee.
• Your IVA will be visible on your credit file for six years.
• Your name will appear on the public Insolvency Register.
• You may need to open a new business bank account if your current one’s linked to your debts.
• An IVA doesn’t cover secured debts like mortgages or car finance.
• If you don’t stick to the plan, your IVA could fail – and bankruptcy may become an option.

Is a Self-Employed IVA right for me?

This solution may be suitable if you:

• Are self-employed or run a small business.
• Struggle to keep up with unsecured debts like credit cards, overdrafts or loans.
• Want to avoid bankruptcy and continue trading.
• Have regular income (even if it varies month to month).
• Want a structured, legally protected way to reduce and clear debts.

We’ll complete a full assessment of your circumstances and will recommend the most suitable debt solution. If a Self-Employed IVA is right for you, we’ll explain everything clearly before you decide to go ahead.

How to apply for a Self-Employed IVA

We make the process straightforward and confidential – and we’re here to support you every step of the way.

Here’s how to get started:

1. Get in touch – Use our online debt solution tool or call 0800 316 1833.
2. If a Self-Employed IVA looks suitable, we’ll connect you with an IP at our sister company, PayPlan Bespoke Solutions Ltd.
3. Together, you’ll build a 12-month cashflow forecast that reflects your actual income and outgoings.
4. Your IVA Proposal is submitted to your creditors for approval.
5. If approved, you’ll make monthly payments – and we’ll support you throughout the journey.

Based in Scotland?

IVAs aren’t available in Scotland, but a Trust Deed offers similar protections and could help you reduce or write off unaffordable debt while staying self-employed. Our team can talk you through this option.

Ready to take the next step?

You don’t have to face business debt alone. Our friendly, expert team is here to help – without judgment and without pressure.

Get debt help online or call us on 0800 316 1833 for a confidential conversation.