IVA for self employed (sole trader)

The people who are self employed or are sole traders often have to take huge risks in order to take their business ahead. But sometimes their plans may not succeed and they may incur huge loses and may find themselves in mounting debts. Such individuals can do an IVA and easily manage their debts in an efficient way.

An IVA can help the sole traders in getting temporary relief from the creditors and to allow them to concentrate more on getting their business back on the track.

According to the current income and expenditure of the sole trader, a monthly payment to all the creditors is decided upon by the supervisor.
After a fixed period of time, usually five years, the term of the IVA is completed and the applicant can become free of all his or her debts and can start his business afresh.

If any amount is still outstanding even after the completion of the IVA term then the creditors are obliged to write off the debt. The interest on the outstanding debts during the IVA is also not charged by the creditors and this takes the extra pressure off the debtor.

The creditors are well aware of the fact that they can get their repayments only if the sole trader is allowed to continue his business and therefore they let him or her do his or her business.

Any self employed person, who finds himself burdened with debts which are more than twelve thousand pounds and the number of creditors is more than two, can apply for an IVA.

Highlights:

We advice to speak with a registered Insolvency Practitioner to evaluate each individual case before applying for an IVA as a sole trader.

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