Self-employed IVA
Understanding how an IVA will affect your bottom line
Being your own boss and having control over your business certainly has advantages, but when debt worries take over, being self-employed can be extremely stressful. At Simple IVA we get many calls from people running their own businesses who are concerned about the impact an IVA would have – let’s clear up some of the confusion.
Minding your own business!
We understand the stresses and anxieties debt can entail, especially when you’re juggling the demands of running a business. It’s important to stress one thing right from the outset – there’s no point in considering an IVA if you know your business is not viable. We understand that your business may be in trouble and debts may be piling up, but it could be that the problems can be overcome.
Have a chat with us and we’ll help you take a realistic look at the bigger picture. Can you see your business generating a regular income in the near future? Is it likely your business will survive this rough patch? If the answer to both these questions is yes, then it’s certainly worth talking to us and getting some guidance about how an IVA might work for you.
Money, money, money
Ultimately, once you’ve settled on an IVA any profit your business makes would be expected to be made available to your creditors. It may sound harsh, but remember an IVA is not forever and most people we speak to find that because an IVA is only for a set amount of time (usually around 5-6 years) it’s preferable to bankruptcy and can be a good alternative to the upheaval bankruptcy can entail. As a self employed person, becoming bankrupt would mean your business would shut down; you would have to tell your employees they no longer have a job and any assets associated with the business you’ve built up may be sold off.
The same difference
In many ways the criteria for a self-employed person taking on an IVA is very similar to that of an employed person.
- You must be able to prove you can afford to take part in the IVA
- You must have the desire to pay your creditors as much as you can afford each month
- You must be committed to making an IVA work and finding your way out of debt
Talk to our advisors today and let us do some of the hard work for you!