My husband and I are business partners. Recent events (mainly the recession) have caused us to lose much of our business and we have scaled down to a fraction of what we used to turn over. In addition my husband has cancer which, although not stopping him from working in between times) has meant we have had to keep on a couple of drivers. Over the years we have taken out several loans to mostly help with tax bills and also sold our house for this reason. Currently we have a much smaller, yet reliable income but are struggling with these old loans and repayments for vehicles - also tax bills that keep rolling in. We are currently spending approx £2000 more a month than are earning - obviously this is draining our overdraft and very soon we will have serious consequences. We have been in business for 19 years and have always paid our debts but the figures now are just not adding up. Would an IVA be a good idea for us? Would it be in both our names? Would we be ok to retain our vehicles? I hope someone can advise. Thank you.
Hi yanyan, sorry to read that things have become so difficult for you, having previously spent 25yrs as a self employed sole trader I can immediately relate you what you say. Is it a courier business, or taxis maybe?
It is definitely worth exploring the option of an IVA, it may well be the best opotion for you both, impossible to say until you have consulted with someone, just try speaking to a couple of the companies linked to this website, at least then you would know if an IVA is an option.
As for your question, well if the debts are in both, or joint names then it would be what is known as an interlocking IVA, either way all your usecured debts would be included, if the vehicles are being purchased via hp then there is every chance you would be able to retain them and continue with the payments. There are so many variables that come into play when assessing the viability of an IVA that you really would need to take advice before making any decisions.
Good luck, hope there is a solution that works for you.
IVAs for both of you may be a sensible solution for you to consider - if your outgoings are more than your incomings then it is clear that you will have to do something before the situation gets worse and your business becomes in jeopardy.
I would select an insolvency practitioner with a good track record of dealing with self-employed clients, and if the debts are largely business related then perhaps a Partnership Voluntary Arrangement shoudl also be considered. These are actually quite rare, but work very well and are similar to IVAs.
If your vehicles are essential to the running of the business then they should be excluded from the voluntary arrangements, but assuming that you may be in the haulage or courier business, it will be important to ensure that you have a sufficient capex budget for replacements as five years is a long time if they are doing a lot of mileage.
Having a chat with an insolvency pracititioner does not commit you in any way, and we may spot things within your own business that you can change which you do not see because you are so involved in the day to day running of matters. Having run the business for 19 years, which is providing your livelihood, I would urge you to seek advice soon in order to protect the business and your future income stream - and it is good to see that you have already made cost-cutting measures which have assisted in the turnaround, and have been prepared to make sacrifices as well - the sale of your home - to ensure that you do the very best by your creditors, but it may now be time to seek some professional input as well.
So sorry to hear of your problems and of your husbands illness. I hope he makes a full recovery.
Speak to a couple of professionals about your debt - the experts that post on here come highly recommended and you can find them via the 'Ask a question' link on the left hand side of the page or visit www.iva.com for a list of companies and reviews and give several a ring for some free advice. As Mel says, try and find one who is well versed in dealing with the self employed.
The forum is also here for support and advice at any time.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thank you so much for all your replies.
Just another quick one. In are business we have to demonstrate 'good repute' to the traffic commissioner. Would an iva affect this? Thank you
I've no idea on this one, not heard of this before.
Hopefully one of the experts will be able to help.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
