Can I get an IVA as a director?

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steve6

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Post by steve6 » Tue Feb 12, 2008 6:46 am
HI - I AM A COMPANY DIRECTOR OF A LIMITED COMPANY CREATED OCTOBER 07. CAN I GET AN IVA AS A DIRECTOR?
 
 

carlmcmullen

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Post by carlmcmullen » Tue Feb 12, 2008 8:10 am
Normally the answer is Yes, it is not an offence becoming a director.

However, there are occasions were the articles of the company are likely to contain a provision that a director is removed if he/she goes into an IVA, which can be amended by holding an EGM.

Not always the case but worth checking.
 
 

MelanieGiles

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Post by MelanieGiles » Tue Feb 12, 2008 8:31 am
IVAs were originally created with company directors in mind, so there should be no problems in your case. If you have personally guaranteed any liabilities of the company, these will need to be dislosed to your IP.
Regards, Melanie Giles, Insolvency Practitioner
 
 

steve6

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Post by steve6 » Tue Feb 12, 2008 11:33 am
the business only started trading in october 07, only myself and a business partner, no staff or major assetts. 15k charge has been placed on my home as security for the financing to start the business. financial problems started way before the business was created, the business is hopefully my way out of the hole, but these things take time and i dont know how long ive got before the wolves start really knocking. dont want to bankrupt the business because i need to take too much out of it to pay my way, so need ideas of other options, and if an iva is the way to go. any help would be much appreciated
 
 

MelanieGiles

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Post by MelanieGiles » Tue Feb 12, 2008 11:38 am
Are you a salaried director in the business? If so,your IP will need to see copies of your payslips. If you are merely taking dividends, evidence of this will also need to be shown, together with projections for the company which indicate that you will be able to draw monies sufficent to fund the IVA contributions.

I would stongly recommend that you appoint an IP with experience of self-employed cases and dealing with company directors.
Regards, Melanie Giles, Insolvency Practitioner
 
 

ianmillington

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Post by ianmillington » Tue Feb 12, 2008 12:02 pm
Yes, you could look at an IVA, but points which immediately spring to mind are:

1. You need to check the company's articles as the standard ones provide for the removal of a director who enters an IVA. Fixed by shareholder resolution.

2. The IVA will take account of your unsecured debt only, and not the charge registered against your house.

3. How did the debt arise? Was it through trading or simply consumer debt?

4. If trading, how much Tax/VAT do you owe, if any?

5. Have you done a business plan for the company? Vital this one, as your income will be entirely dependent on the success of the company. Without some sensible forecasts it will be difficult for any IP worth his/her salt to put his/her name to your IVA proposal.

Hope this gives you food for thought.

Ian
Last edited by ianmillington on Tue Feb 12, 2008 12:02 pm, edited 1 time in total.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd)
www.pdhl.co.uk
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