IVA Questions & Answers
Q : Can I be self employed in an IVA?
A :
You ought to have no problem at all setting up a self-employed business whilst you are in an Individual Voluntary Arrangement. Obviously, self-employment will need to bring sufficient income to maintain the agreed repayments to the IVA. The person with an IVA will also need to inform their IVA supervisor of the change in his or her circumstances, and allow the supervisor to view copies of the trading accounts. This will be required each year, so that the supervisor can decide if the repayment amount still matches the individual's level of disposable income. Seeking the help of an Insolvency Practitioner is a good idea, as they can guide you through this mindfield of options, opportunities and potential solutions.
It is worth remembering that going into business for yourself often requires longer hours, more commitment, further financial investment and stress than being employed by someone else. Unless your area is a boom industry, it would be worth taking some serious time to consider what would happen if you suddenly lost all of your business. If your IVA was to fail due to this and your creditors possibly petition you for bankruptcy, what would you do?
There are two final additional thoughts worth considering. Firstly, if you need credit to help your business, it will be almost impossible to get. Secondly, if you start to earn a good deal of money, most of that money will be taken from you to repay your creditors.
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