New debts incurred in IVA

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CoffeeBoy

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Joined: Wed Jan 23, 2019 10:15 pm

Post 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.

Foggy

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Post 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 ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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Lisa Thomas

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Post 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).
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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