The numbers of self employed people entering into Individual Voluntary Arrangements (IVA) is very significant indeed.
The governments IVA legislation, introduced in 1986, was brought in specifically to help the self employed and other small businesses restructure overwhelming debts, without having to take the drastic step of having to apply for bankruptcy.
There are now more than four million self employed people working in the UK. This very significant section of the community suffers the double disadvantage of trying to run both business and personal finances at the same time. Often these business and personal financial structures merge together and many self employed people suffer from major debt problems.
For those self employed people finding themselves with significant debt and cash flow problems the first step should be to approach their accountant to discuss all the available refinancing options which may be available.
Whether an accountant is used or not, the basic business options are reasonably straightforward for all small businesses - :
If the refinancing and marketing options are not possible then a self employed businessman may need to look at a fundamental debt restructure along the following lines - :
An IVA is a very robust option for the self employed. If you want further advice on how a self employed IVA may be able to resolve all your personal and business debt problems then please do not hesitate to give us a call.
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Total unsecured debt : £4000