Individual Voluntary Arrangements (IVAs)
Individual Voluntary Arrangements provide a way to avoid bankruptcy providing a sum of money can be raised which creditors are prepared to accept in full and final settlement of their debts.
If the business is worth saving and creditor pressure is not allowing time to negotiate an informal arrangement or they will not agree to the proposal then an IVA will allow you to continue to trade and generate income.
The IVA process is a legally binding agreement and as such creditors can claim tax relief against bad debts. Unlike bankruptcy, an IVA does not prevent you from becoming a company director nor does it impact on your professional status.
- Insolvency options for sole traders and partnerships
- Insolvency options for limited companies