Some Interesting IVA Question and Answers
Can I take out an IVA if I am self-employed?
Yes, you most certainly can but you must remember that all business debts will be your personal debts. Being self employed is one of the most self-gratifying experiences a person can have but it does come loaded with a heavy responsibility for keeping business flowing. When things start to become lapse, the downward spiral of debt starts plummeting out of control and a reduced income means less money for creditors. This is when an IVA can give you valuable breathing space by negotiating an agreeable monthly sum with your creditors. You can then make one affordable payment whilst trying to re-build the business. A self-employed individual must be in debt to at least £15,000 and owe money to more than four creditors. He/she must also be able to show that monthly payments are affordable on a regular monthly basis for at least five years.
Is there such a thing as a lump sum IVA?
Yes, there most certainly is. A lump sum IVA does not last for five years as it begins and ends with one solitary payment known as a ‘lump sum’. All of the usual benefits of the IVA still apply but an Insolvency Practitioner is not needed as there is no need to oversee any monthly payments so there is a reduction in the fees. This means that creditors will actually receive back a larger sum and the debtor will still have the advantage of having a percentage of his overall debt reduced. In some instances debtors may only pay back a third of the total debt but this strictly depends on an individuals circumstances. Speak to a professional for free debt advice and some more IVA FAQs
