www.iva.co.uk

me and my husband are considering an IVA my husband is self employed and we have recently bought a car on finance needed for work would this be taken off us if we went ahead with the IVA

Hi,

If you have a car on finance, as long as the finance company is happy, you are usually allowed to keep paying for it outside of the IVA until the car is finished, when the payment then transfers across to the IVA.

If you are thinking of an IVA, then you need to see professional advice. Visit www.iva.com for a list of companies and reviews. Give one or two a ring for free and impartial advice about all the options open to you and the best way forward for your circumstances.

It is pretty unlikely that you will be asked to give the car up, but you will need to have sufficient money available to meet the ongoing HP payments and fund contributions to your creditors.

hi

thanks for your replies i haver another question my husband is a self employed plasterer who employes 2 lads his income varies from month to month how will they calculate his ability to pay back the IVA

thankyou

apple98

Hi,

Not sure, but it may be that they average it out over the year.

Hopefully one of the professionals can answer that.

Your hubby will have to have a face to face interview with an IP as he is self employed.

With the matter of your husband being self employed, he will have to prove his income through a 12 month period and if he gets paid through wages slips then he would need to surrender those the more the better.

With self employed unlimited liability cases, they would also sometimes ask for a copy of your husbands management accounts, for the last tax period, its to make sure for fraud and tax purposes.

They would say try and pay that out of your business as an expense for the h.p on the car, as it is mainly used for that purpose.

Hope this is of help

The IP you choose to represent you will take a view based upon the quality of the financial information you are able to provide. There is no requirement to demonstrate a 12 month trading period, if he is running a viable business, however this will need to be demonstrated by sound financials.

with my husband being self employed as you no the one thing that has held us up applying for our iva is the fact my husbands van for work is on its last legs and he really needs a new one he is unsure whether this would affect the iva our heads are in bits at the minute stress levels are high and we dont really no what to do for the best we really wanted to try and go ahead with this and get it sorted this week any advice would be greatly appreciated

thankyou

Ring one of the professionals on the link I posted earlier in the thread.

You could also click on the experts link on the left hand side of the page and contact one of the IP's who post on here.

They will be able to give the best advice and it is free.

Professional advice is key at the moment to ensure you fully appraise your financial situation with regard to moving forward. The acqusition of a new van is a priority if your husband's business is to proceed, however you will need to demonstrate its viability to justify the cost.

Best to choose a firm with day to day experience of dealing with the self-employed.

Creditors will appreciate that your husband will need a reliable vehicle in order to conduct business and generate income for the IVA. His projections will need to demonstrate that the expense can be met still offer surplus into the arrangement. Try also to anticipate any other replacements or renewals over the 5 year period, or maybe a 'float' for incidentals agreed by your IP to be used for things the IP agrees to with any unused funds being offered to the creditors.

Make sure that you have a provision for tax & NI, although I'm sure that an IP would point this out if it was missing. In an IVA, this would initially be paid into the IVA until the end of the tax year in which the IVA is proposed and after that, payments will be due to HMRC.

hi

thankyou for all your replies could anyone recommend a good IP that can deal with the self employed

thanks

As ever, you should make your own mind up and a good place would be to visit www.iva.com have a look around, read the reviews etc and take time to speak to at least 2 or 3 firms before you make your next move.

Regards.

Hi Adrienne
It is important that when choosing an IP to represent you, they are reputable, will put the best possible case forward to your creditors and decide on a contribution that is fair to you (a contribution that you can reasonably afford) and also to your creditors. It is also worth looking at what companies adhere to industry standards.

Thanks

I don't normally recommend anyone in particular, but Melanie Giles does have a good reputation with self employed persons entering into an IVA.