Self-Employed IVA2019-11-13T11:45:53+00:00

Self-Employed IVA

Write-off business debt and continue to trade

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Self-Employed IVA

A Self-Employed IVA is very simply, an Individual Voluntary Arrangement for a person that is Self-Employed.

An IVA is an agreement made between you and your creditors, that usually allows you to repay a percentage of your debts over 5-years. Under the terms of the IVA you will make a single monthly payment that you are able to afford for up to 5-years; at the end of the IVA term you will be debt free. An IVA is a formal process that can only be managed by a Licensed Insolvency Practitioner. In 2017, around 50,000 people had IVA’s approved in the UK; around 1,000 IVA’s per week.

Self-Employed IVA Specialists

There are many firms offering general debt advice however, in most cases they do not appreciate the specific problems faced by self-employed business owners. Anderson Brookes specialise in small business debt advice; over 90% of our clients are currently running their own business. Many of the standard debt solutions (debt relief orders, debt management plans and bankruptcy) are not usually appropriate for self-employed people.

For more information about our Business Finance solutions contact us today.

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Advantages of a Self-Employed IVA

  • Continue running your business

  • All legal action will be stopped, including CCJ’s and Bailiffs

  • You will only make one, affordable monthly payment

  • Your creditors will not be able to call you chasing payments

  • Interest and late payment fees are frozen

  • You are usually debt free in 5-years

  • Once approved the IVA is legally binding on all creditors, even if some rejected your offer

Immediate Protection From Creditors

Interim Order

An Interim Order is a Court Order designed to give you immediate protection from your creditors until a meeting can be convened to consider your IVA proposal. An interim order does not itself solve the debt problem however, it can buy valuable time in which we can help finalise the terms of your proposal. The interim order is usually granted for 28-days and once in place, it suspends all enforcement action against you, including CCJ’s, Bailiffs and Bankruptcy Petitions.

How is an IVA Arranged?

Financial Statement

Initially, we will help you to prepare a Financial Statement. In preparing your statement, we will identify your total debts and help prioritise those requiring immediate attention. We will also help calculate what you can afford to pay to your creditors each month, based on your income and expenditure.

IVA Proposal

We will then help draft your IVA proposal; this is effectively the offer you wish to make to your creditors. The IVA proposal needs to be set out in a specified format. It will confirm your proposed monthly payment and the exact terms of the IVA. Once finalised, it will need to be signed by you, before we circulate it to your creditors.

Creditors Meeting

The proposal will confirm the date of your Creditors Meeting, this will usually be around 3-weeks after the proposal is signed. Each creditor will be asked to submit a vote either ‘for’ or ‘against’ the proposed offer. At the time of the Creditors Meeting, the votes will be counted and if 75% of your creditors (in debt value) are in favour of the IVA, your agreement becomes legally binding on all creditors, whether they voted in favour or not.

IVA Approval

Should the IVA be approved by creditors, our role will change from ‘Nominee’ to ‘Supervisor’ of the arrangement. From that point forward, we are responsible for making sure you stick to the terms of the offer you have made.

Neil Batty
Neil BattyManaging Director
Neil established Anderson Brookes in 2001. He has over 20-years’ experience helping Business Owners and Company Directors that are struggling with debt.

Contact Neil for immediate help on 01204 255 051 or, email at the above address

IVA Example

Client Mr C – T/A  ### Haulage
Reason for enquiry HMRC Debts and Business Rates
Status Sole Trader
Debts £68,000
Property Owned with mortgage
IVA agreed £400 per month (60-months)
Result 65% of debt written-off

Our Clients Priorities

  • Carry on running their business.

  • Write-Off unaffordable debts

  • Protect their homes and personal assets

  • Employ staff and pay wages to employees

  • Maintain good relationships with their Suppliers

  • Lease business premises

About Anderson Brookes

I already have a CCJ is it too late to take advice?2018-02-18T19:23:32+00:00

No. Call us straight away on 0800 1804 933, in most cases we can prevent CCJ’s from being enforced by bailiffs if we are instructed early enough.

Can you help with Bailiffs?2018-02-18T19:23:03+00:00

Yes. If we are instructed early enough, we are usually very successful in stopping bailiffs from removing assets. We have written a useful guide to the powers of bailiffs on this website; please visit our Help Guide section. Whilst the Help Guide is very useful, it is no substitute for specific personal advice. Please call us now and speak with a qualified Adviser.

In most cases, we are able to speak directly with the bailiff; once they understand your circumstances, they may allow us extra time to put a repayment plan together. If the bailiff is not receptive to our requests, we may be able to help you get a Court Order blocking bailiff enforcement action for around one month. This should give us all the time we need to put a formal repayment plan in place.

Where can I check out Anderson Brookes?2018-02-18T19:20:15+00:00

Before discussing your financial affairs, we believe that you should check the credentials of the individual or organisation you intend speaking with. We are no different:

Anderson Brookes Ltd is Authorised and Regulated by the Financial Conduct Authority; our FCA registration number is 669796. You can confirm our details on the FCA website www.fca.org.uk

Anderson Brookes Insolvency Practitioners Ltd is a firm of Insolvency Practitioners. Brendan P Hogan is licensed to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association; licence Number 101680. You can confirm the licence details at www.insolvency-practitioners.org.uk/ipasearch

Anderson Brookes Ltd and Anderson Brookes Insolvency Practitioners Ltd are both registered at 4th Floor, Churchgate House, Bolton, Lancashire BL1 1HL

How are Anderson Brookes Regulated?2018-02-18T19:21:02+00:00

Anderson Brookes Ltd is Authorised and Regulated by the Financial Conduct Authority (FCA). Anderson Brookes Insolvency Practitioners Ltd is a separate company. Brendan P Hogan is Licensed to act as an Insolvency Practitioner by the Insolvency Practitioners Association (IPA).

Can you provide advice over the phone?2018-02-18T19:22:25+00:00

Yes. Although we are based in Bolton, Lancashire, we deal with clients throughout the UK. Most of the work we do can be completed over the phone. You will not need to visit our offices; we can however, arrange to come and see you at your home or business if you prefer.

Do you offer a Free Consultation?2018-02-18T19:21:54+00:00

Yes. We offer a Free Consultation in all cases. We will ask questions to help us understand your circumstances and provide you with a specific recommendation. Should you decide to move forward with any recommendation we have made, we will confirm any costs involved in writing, before accepting your instructions. In some cases, there will be no charge made by Anderson Brookes for the services we provide.

Do I need an appointment?2018-02-18T19:24:00+00:00

No. You do not need to arrange an appointment, simply call us on 0800 1804 933 and we’ll be able to help. If you prefer, we can arrange to call you at a time convenient to you.

Questions about Individual Voluntary Arrangements

Do I qualify for an IVA?2018-01-23T05:00:49+00:00

To qualify for an IVA, you must:

  • Owe at least £7,000 in unsecured debt to your creditors
  • Have a sustainable income (this can include employment income, benefits, pension etc)
  • Be able to afford to monthly payment of at least £50
  • Reside in England, Wales or Northern Ireland
  • Will the IVA affect my pension?2018-01-23T04:59:09+00:00

    Your state pension will not be affected by an IVA. If you are paying into a private pension, you may be asked to reduce or suspend payments into the pension for the duration of the IVA. If you are receiving income from a private pension, this will be considered when establishing your overall monthly income and expenditure. If you were to release a cash lump sum from your pension during the term of your IVA, you may be required to pay more into the arrangement. You will not normally be obligated to release funds from a private pension although you may choose to do so as part of your offer to creditors. Your IVA proposal will confirm the specific terms in relation to pensions.

    What will happen to my bank account?2018-01-23T04:58:53+00:00

    If you don’t owe your bank any money (overdraft facility, loan etc), then proposing an IVA should not affect your account.

    If you do owe money to your bank, we recommend opening a new account with a bank you have no previous connection with as soon as possible. We can help get you a new bank account set up very quickly. There are banks that will not carry out any credit searches and are usually able to open accounts on the same day.

    Banks usually have the ‘right of offset’ built into their terms. This means that they can use money in one of your accounts to offset against debts in another. It is important to remember that many banks are part of the same ‘group’, for example HBOS includes Halifax and Bank of Scotland.

    Please be aware that your bank could decide to close or freeze your account for any number of reasons, even if you do not owe them any money. For this reason, we always recommend opening a brand-new account with a bank you have had no previous connection with.

    Who will find out about the IVA?2018-01-23T04:58:36+00:00

    Your creditors will need to be informed about your IVA however, your IVA will not be advertised anywhere. In this respect an IVA is much more private that Bankruptcy as all bankruptcy appointments are advertised in the London Gazette. Basic details of the IVA will be available on the Insolvency Register held by The Insolvency Service.

    Will the IVA affect my partner?2018-01-23T04:58:20+00:00

    An IVA should not affect your partner.

    If you reside with your partner and have shared expenditure (rent, council tax, utility bills etc), your proposal should confirm ‘household’ income and expenditure. Your creditors will be keen to see that you are not subsidising your partners standard of living however, your partner does not need to be involved in the IVA.

    Can I take a payment break?2018-01-23T04:58:06+00:00

    A payment break is where the Insolvency Practitioner agrees to suspend your IVA payments for a specified period. You may ask for a IVA payment break in the event of an emergency, for example, if you are made redundant and are looking for a new job.

    Depending on the terms of your IVA proposal, the Insolvency Practitioner may be able to agree the payment break with you. In some cases, the Insolvency Practitioner will not have the option of agreeing a break in IVA payments.

    How much will my monthly IVA payment be?2018-01-23T04:57:12+00:00

    This will depend entirely on your individual circumstances. The monthly payment you make is based on your affordability rather than what you owe. We will help you work out your monthly income and expenditure; this will identify how much you could afford to pay into your IVA.

    If your circumstances change dramatically after your IVA has been set up, we can ask for the payments to be altered. Any change to the originally proposed IVA usually requires creditor approval.

    What happens if someone has guaranteed my debts?2018-01-23T04:56:08+00:00

    In some cases, the only way a person can obtain finance is by having a third-party ‘guarantee’ their application. A young person may have been turned down for a loan as they have not yet built a good enough credit score. A family member may have agreed to guarantee the debt thereby reducing the lenders risk considerably.

    The person that has stood as guarantor will become liable for the debt in the event the original debtor cannot repay it e.g. the parent will become responsible for the loan repayments if their child stops paying.

    If the original debtor enters an IVA, the debt will be listed in their proposal. Although the IVA should still be workable, the lender will want to communicate directly with the guarantor to arrange future repayments.

    What happens if a debt is in joint names?2018-01-23T04:56:19+00:00

    The law that applies to joint debt is called ‘joint and several liability’. This means that both people named on the debt are jointly liable for the full amount; i.e. not half the balance each. In most cases we deal with where there are joint debts, both people will move forward with an inter-locking IVA. This keeps things very simple as both usually offer the same repayment terms to the creditor.

    In some cases, one of the people named jointly on the debt does not want to instruct us to act on their behalf or propose an IVA. It could be that this is the only debt they have, and they are otherwise in a strong financial position. This is more complicated to deal with but still possible through an IVA.

    We would still need to confirm the creditor’s details in our clients IVA proposal, should the IVA be accepted, our client would not need to make further payments towards the joint debt, other than through their IVA. The person that is jointly liable for the debt (but not in an IVA) must continue to honour the full financial commitment to the creditor. It is likely, given the circumstances, that the creditor involved will work with the remaining debtor to arrange realistic repayment terms so long as they are contacted as soon as possible after the issue arises.

    What is a secured debt?2018-01-23T18:07:44+00:00

    A secured debt is a term used to describe any debt that is ‘secured’ against an asset. The asset can be a property, car, furniture or any other physical item that the lender could repossess if you don’t keep up payments on the agreement. A mortgage is a good example of a secured debt; if you don’t keep up payments on your mortgage, your home could be repossessed.

    Secured debts cannot go into an IVA.

    What is an unsecured debt?2018-01-23T18:07:34+00:00

    An unsecured debt is a term used to describe any debt that is not ‘secured’ against an asset. The asset can be a property, car, furniture or any other physical item that the lender could repossess if you don’t keep up payments on the agreement. A credit card is an example of an unsecured debt; if you don’t repay the credit card company, there is nothing they can repossess.

    Unsecured debts can normally go into an IVA.

    Should I make myself bankrupt?2018-01-23T16:51:06+00:00

    It may be that declaring bankruptcy is the right solution to your debt problems however, you should take professional advice before proceeding with this. There are lots of other personal debt solutions available and it is vital that you have considered all these before going bankrupt.

    Once we understand your financial circumstances, we will explain all the advantages, disadvantages and implications of bankruptcy before providing you with a recommendation. At that time, if you still feel bankruptcy is the best option you will understand the full process and know exactly what to expect.

    Can I keep my car in an IVA?2018-01-23T06:04:22+00:00

    In most cases your car will not be affected by the IVA. If your car is subject to a finance agreement, you will need to keep up payments to the finance company; we will make allowances for this when establishing your monthly expenditure. If your finance payments are particularly high, you may be asked to replace the vehicle with something more affordable to free up money each month. Likewise, if you have a very valuable car (after deducting the balance of any finance secured against it), you may be asked to replace the car with something cheaper and introduce the cash released into the IVA.

    Do I need to include all my debts in the IVA?2018-01-23T06:03:00+00:00

    In general, all your unsecured debts should be included in the IVA. This is because you must show that you are trying to treat all your creditors equally. It is possible in some cases, to exclude a creditor from the arrangement. For example, if you are running a business that relies entirely on a particular supplier, it may be argued that any debt owed to them needs to be prioritised to maintain the relationship; without that supplier, the business would close, and an IVA would not be sustainable.

    Will an IVA affect my job?2018-01-23T06:05:43+00:00

    Having an IVA will not usually affect your job. People working in certain professions such as Solicitors and Accountants may be subject to restrictions during the term of the IVA.

    What happens at the end of the IVA?2018-01-23T05:00:34+00:00

    Once you have made all the required payments into the IVA, you will be issued with an IVA completion certificate. The Insolvency Practitioner will notify all your creditors that you have successfully completed the IVA. Your IVA will be removed from the insolvency register within 3-months of the IVA being completed. Although you will have been discharged, the IVA will remain on your credit file for 6-years from the date it was approved.

    What happens if my IVA fails?2018-01-23T05:00:24+00:00

    Your IVA will only normally fail if you don’t keep to the terms detailed in your proposal. The most common reason for the failure of an IVA is several missed monthly payments. In the first instance, we would talk to you about the reasons for the arrears, we may be able to ask for your payments to be lowered temporarily.

    If you have been unable to get the arrangement back on track, a notice of breach will be issued by the Insolvency Practitioner. Unless the breach is rectified within the specified time, your IVA will officially be failed.

    The Insolvency Practitioner will need to inform all your creditors that the IVA has failed. Once the creditors become aware the IVA has failed they are free to pursue you for the outstanding debts. The Insolvency Service will also be informed and the IVA will be removed from the register within 3-months.

    Can I pay an IVA off early?2018-01-23T05:00:12+00:00

    Yes. If your circumstances change or you receive a windfall, you may want to settle your IVA early. You can offer to pay off the IVA at any time during the term of the arrangement. The first step is to contact the Insolvency Practitioner acting as your Supervisor, they will need to put your offer to creditors even if you are offering to repay the original debts in full. Subject to the creditors accepting the offer, you will make the lump sum payment to the Insolvency Practitioner and shortly afterwards you will be discharged from the IVA.

    Your creditors may accept an offer that is less than the total of your remaining contributions.

    Will an IVA affect my credit file?2018-01-23T05:00:01+00:00

    Yes, in most cases entering into an IVA will have a negative impact on your credit file. To a certain extent, if you have already been subject to legal action, CCJ’s etc, considerable damage to your credit file may already have been done. Once approved, an IVA will stay on your credit file for at least 6-years from the date it was approved.

    What is a Full and Final IVA?2018-01-23T04:59:50+00:00

    A Full and Final IVA is an IVA into which you make a single, lump sum contribution and this is accepted in full and final settlement of your debts. Once you have paid in the agreed amount, you will normally be discharged from the IVA. You do not always need to offer an amount equal to your debts; your creditors may accept a much lower amount if they believe accepting the offer is their best chance of recovering their money. For example, you may owe £20,000 in total, but the creditors accept an offer of £12,000 in full and final settlement.

    Full and final IVA’s can work well for people that will struggle to make any sort of monthly payments. They are also a great option for people that have access to third-party funds for example, a friend or family member offers to put up the money to clear the debts but can’t afford to clear the full balance.

    What if I have a windfall whilst I’m in the IVA?2018-01-23T04:59:40+00:00

    Any windfall that you benefit from during the term of the IVA will need to be declared to the Insolvency Practitioner; this includes lottery wins, inheritance, gifts etc. Your proposal will confirm the exact terms in respect of a windfall, but it will usually mean you need to pay extra into the IVA. The good news is that you may be able to settle the IVA early.

    What happens to my property in an IVA?2018-01-23T04:59:29+00:00

    Most IVA proposals are designed to protect people from losing their home. It is very unlikely that you will need to sell your property as part of an IVA. If you own a property, it is likely that your creditors will insist on an ‘equity clause’ being added in to your IVA proposal. If applicable to you, the equity clause will simply state that you are willing to try and release equity from your property in the final year of your IVA (usually the 5th year). If you are unable to release equity in the 5th year, your IVA may be extended for a further 12-months.

    If you have a very large amount of equity in a property, you may be asked to release this at an earlier stage. Ultimately, the terms of the IVA you wish to propose are up to you. You may decide to ask the creditors to exclude the equity in a property for certain reasons and they may agree to do this.

    I already have a CCJ is it too late to take advice?2018-02-18T19:23:32+00:00

    No. Call us straight away on 0800 1804 933, in most cases we can prevent CCJ’s from being enforced by bailiffs if we are instructed early enough.

    For more information about our debt solutions contact us today.

    CALL 0800 1804 933
    LIVE CHAT
    EMAIL AN ADVISOR

    WHAT OUR CLIENTS SAY


    “The service I received from Anderson Brookes was excellent. I’d already made the decision to cease trading but I didn’t know how to deal with my legal responsibilities as a Director. I went through the process of Creditors Voluntary Liquidation (CVL). Anderson Brookes helped me through every stage”.

    Mr L C. Managing Director of #### Cash & Carry Ltd.


    “I write to you having recently used your company to arrange an IVA. Throughout this process I was stressed to the point of being unwell and encountered many obstacles, all of which Khalid walked me through. I am now beginning to start the process of getting myself on the right track, and this is largely thanks to Khalid’s pragmatism.”.

    Mr L. A., sole trader


    “Neil helped me through the process of Liquidating my company. Although closing-down the company was quite stressful, it was surprisingly quick and Neil made sure I knew what to expect at each stage. I have recommended other business owners to Anderson Brookes and always received great feedback”.

    JP, Director of XXX Ale House Limited


    “Why my company ran into cash-flow difficulties, I was introduced to Neil at Anderson Brookes. We discussed lots of different options but I decided to place the company into Liquidation. The problems are now behind me and I’ve been able to set up a brand new, debt-free company”.

    Miss G H - Director of #### In Exmouth Ltd


    “Anderson Brookes helped me arrange a Business IVA. I was a sole trader and my plumbing business had run into financial problems. I was able to repay my debts through a voluntary arrangement over 5-years. I’m pleased to say; the business has been trading very successfully now for the last few years”.

    Mr A C - trading as ‘### Plumbing & Heating’


    “Just thought I would let you know that business is going extremely well I have no credit commitments, new car, new van and 2 good holidays a year and I really do owe all of that to you. I really appreciate your help in turning my life around. I would hate to think about where I would be if I hadn’t met you”.

    Mr T. C. - Self-Employed Engineer


    “I was introduced to Neil at Anderson Brookes as I needed help with a financial problem. It turned out that I just needed to have all the options explained. Within a month of taking advice, the problem was behind me. I’m happy to recommend Neil and Anderson Brookes to anyone that needs advice on debt”.

    Miss L.H. - Informal Debt Settlement


    “You were very helpful and professional.  It was a very stressful time, thanks to your work and management, I was able to relax again.”

    Mrs S. T. - Sole Trader

    CONTACT OUR TEAM FOR FREE PROFESSIONAL ADVICE

    Our professional and friendly team are on hand to provide you with the help and guidance you need at this difficult time.

    CALL 0800 1804 933
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    EMAIL AN ADVISOR

    ADVICE YOU CAN TRUST

    ANDERSON BROOKES GROUP

    Anderson Brookes Ltd is a limited company registered in England and Wales; the company registration number is 4213701. Anderson Brookes Ltd is Authorised and Regulated by the Financial Conduct Authority (FCA); our FCA registration number is 669796. You can confirm our details on the FCA website www.fca.org.uk. Data Protection: our ICO registration reference number is Z5595675. Anderson Brookes Ltd does not administer ‘debt relief orders’, ‘debt management plans’ or handle ‘client money’. In the event we believe a debt management plan or debt relief order may be the most suitable debt solution we will provide you with the contact details of a reputable, non-fee charging organisation. The Money Advice Service are an independent service, set up by government to help people make the most of their money, they give free, unbiased money advice to everyone across the UK – online, over the phone and face to face. You can visit Money Advice Service at www.moneyadviceservice.org.uk

    Anderson Brookes Insolvency Practitioners Ltd is a limited company registered in England and Wales; the company registration number is 10324159.  Laura J Prescott and Brendan P Hogan are licensed to act as Insolvency Practitioners in the UK by the Insolvency Practitioners Association. Licence Numbers 15010 and 13030 respectively. Our VAT Registration Number is 249 5912 70. Data Protection: our ICO registration reference number is ZA201949. Anderson Brookes Financial Services Ltd is a limited company registered in England and Wales; the company registration number is 08660228.  Data Protection: our ICO registration reference number is ZA123471. All group companies are registered at 4th Floor, Churchgate House, Bolton BL1 1HL

    Anderson Brookes Insolvency Practitioners Ltd operate a complaints procedure. In the first instance, please call 01204 255 051 or email info@andersonbrookes.co.uk to request a copy of the complaints process. If we are unable to deal with your complaint to your satisfaction, your complaint should be made to the Insolvency Complaints Gateway by visiting their website https://www.gov.uk/complain-about-insolvency-practitioner and completing and submitting their online form. Alternatively, you can print the form from their website and send it by post to The Insolvency Service, IP Complaints, 3rd Floor, 1 City Walk, Leeds, LS11 9DA or contact them by telephone on 0300 678 0015 (Monday to Friday 9am – 5pm).

    Some of the services provided by Anderson Brookes are not regulated by the Financial Conduct Authority. Some of the debt solutions we provide advice on are only available in England and Wales; Anderson Brookes does not provide services outside England and Wales. Anderson Brookes is a commercial, profit seeking organisation; depending on the services provided, fees may be payable. Any fees applicable will be confirmed to you in writing before any chargeable work is completed. Anderson Brookes operates a complaints policy; if you are not happy with the way we have  dealt with you or your case, please ask us for a copy of the policy.