how does IVA affect my trading status?

[graham.h]

Hi. I can manage the debt at them moment, but there could be a time soon when I cannot.
I work as an IT contractor in a ltd co. The change to contractor from a secure job is to pay off my daft dents, so I'm trying.
After going through my 20's without a care, I have 2 kids now and I need to grow up.

If I go down the IVA route how does that affect my trading status?
Can I continue with the co.?

Thanks in advance.

[ellie 553]

Hi Graham - i am self employed as well - what kind if debts do you have at the moment?

[Beechy]

If the Ltd co has debt it is possible to do a Company Voluntary Arrangement (CVA), this similar to an Individual Voluntary Arrangement in terms of the general working.

If you have a liability to the HMRC this will be included in the CVA

If you have any personal guarantees (PG)in place your creditor could and properly will come after you for the short fall, this can then be sorted with an IVA for you personal liabilities (the PG) and any other unsecured debt you have.

We specialize in this type of proposal (as do a limited amount of other companies due to the complexities).

It is important that you have a meeting with a Licensed Insolvency company to discuss your current position in depth.

If you wish to share you liabilities within the forum I will try to assist


Dave Beech

[MelanieGiles]

It doesn't sound to me as if the poster's problems are in the limited company, rather that they are personal liabilities - is this the case Graham? Also are you a shareholder and director of the limited company, or merely an employee?

If so, I assume that you are salaried from the limited company and draw your remuneration as a mixuture of PAYE, dividends and directors loan (if you have one). An IVA will not affect your status as a director, whereas you would be required to resign under bankruptcy proceedings.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp