There are many advantages to an individual voluntary arrangement
Advantages for the individual, business owner or a business partner
An individual voluntary arrangement will enable partners and sole traders to continue their business which will help them bring in more money to make repayments on a regular basis. And all of this can be done without the possibility of losing your house.
An individual voluntary arrangement does not put any restrictions on the individual as to what kind of credit they can borrow however in practice it can prove to be a bit more difficult to get credit while you are on an individual voluntary arrangement.
The proposal of an individual voluntary arrangement is drawn up by the debtor (you) to pay back the creditors (people you owe money to); which means that a person willing to enter an individual voluntary arrangement has been flexibility of setting up targets and payment thresholds which they will be comfortable with.
The individual or business owner has the opportunity of carrying on with their business or acting as a company director; which unlike in a bankruptcy is not permitted
Advantage or benefits for the creditors
The cost of setting up an individual voluntary arrangement is considerably lower than setting up a bankruptcy. This means that the creditors will get more return on their credit
An IVA will allow the creditor to reclaim some of the tax indeed a relief as bad debt. It is because an IVA is an individual insolvency procedure not a legal bankruptcy procedure
Other advantages or benefits of an IVA
An individual is allowed to run a small business
An individual is allowed to carry on with the profession; which in a bankruptcy jobs such as financial services, police forces, Armed Forces or any other HM services
If a person has access to a large sum of money, they can make a formal offer to their creditors to pay off a large lump sum and in return can ask them to write off the debts
Why use us to set up your IVA?
If you have debts over £15,000 than our Insolvency Practitioners can help you by proposing an IVA plan for you. Our Practitioners are industry regulated with many years experience in dealing with people like yourselves. We believe in providing honest, professional and reliable service. Fill out our online no obligation enquiry form to arrange a callback from one of our specialist Insolvency Practitioners. They will be happy to listen to you and devise a plan that is best suitable for your situation.
