www.iva.co.uk

We have just started the IVA process, ie, agreed to go down that road and I am really scared by it all! My husband is self employed and after deducting his business expenses has a reasonable monthly income. However is net profit that is used for tax purposes is after deductions for "paper figures", ie, depreciation etc, will the IVA company use the realistic figures not the accounts figure? Hope this makes sense? Any feedback would be appreciated.

Hi, I'm not too sure about self-employment but do know that hubby would need to have a face to face meeting with your chosen IP.

If you have chosen a firm well versed in dealing with the unemployed, then they will interpret your husband's accounts and cashflow forecasts properly and make sure he provides sufficient funds to pay his taxes on an ongoing basis.

He will need to have a face to face meeting with the insolvency practitioner, or a senior member of their staff, so this will be discussed at that stage in order to get it right before presentation to creditors.

As Melanie says your IP will be looking at cashflow and not just profit figures as the likes of depreciation do not actually affect the cash in your pocket but do reduce your tax bill.

It is very straightforward and ultimately affordability is the key.