Is it possible to get a business IVA?

While there is no guarantee that you are able to enter into a business IVA, there is such a debt help product out there. However, you typically have to meet certain criteria in order to be able to take out any type of IVA (individual voluntary arrangement), including one for your company.  Here are some factors you may wish to bear in mind when considering the possibility of entering into an IVA for business.

·        one of the first factors you may wish to consider when thinking of entering into an IVA for business, is that it typically has an affect on the running of your  business;

·        your creditors may not accept the terms of an IVA and instead use bankruptcy;

·        it is typically down to your creditors to judge the financial position of your company after calculating assets;

·        your businesses finances are typically revealed in full to creditors;

·        if you wish to provide your creditors with a business plan you may wish to show that any previous problems you may have had have been fully resolved. This may go towards proving that your business is still sustainable;

·        while it may be possible for you to enter into a business IVA, bear in mind that there is the possibility of your business being forced to close. This is so that any assets you have may be liquidated. This ensures that you are able to repay a part, if not all of the outstanding debt. Whether this happens or not typically depends on many factors. Of course creditors typically prefer you to continue earning an income from your company to ensure the IVA repayments are met;

·        you may make a request to continue trading following the completion of an IVA proposal.

Along with the business IVA there are numerous different types of Individual voluntary arrangement. These include the assisted IVAs, the single, joint, lump sum and IVA mortgages.

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