New debts incurred in IVA

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CoffeeBoy
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by CoffeeBoy » Wed Feb 06, 2019 1:00 pm
Hi all,


Just another question for you all - I’ve spent some time researching first before asking but as usual - lots of opinions and differing ideas!

If you are a sole trader and are on an IVA and then you incur more debts within the business and probably need to sell up, do those debts you incur after your Iva has started go into the IVA or do you have to manage them outside of the IVA on your own? Obviously you don’t have much disposable so you couldn’t really do that?

Anyways that’s all and thanks for any advice!

Tom.
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Foggy
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by Foggy » Wed Feb 06, 2019 1:17 pm
There are times a new debt can be included -- but these are few and far between. New debt of over £500 can be grounds to fail an IVA as this is expressly forbidden in the agreed terms. As a sole trader you should have started trading on a cash only basis and not incurred new debt.

What sort of money are we talking about ?
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Lisa Thomas
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by Lisa Thomas » Wed Feb 06, 2019 2:49 pm
New debt incurred post IVA cannot be included in the IVA.

You are probably in breach of your IVA if you have taken on credit.

What do the debts relate to and how much are we talking?

If you are getting into debt it suggests the business is not profitable (unless the issue is you personal expenditure).
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