Sole Trader - IVA
In 1997, Mr C.N. had his own company operating as a self-employed garden landscaper. Following a very costly and acrimonious divorce. Mr C.N.’s company unfortunately failed within a few years. He then suffered a complete nervous breakdown which resulted in having no income whatsoever until he returned to work in 2001. During this time Mr C.N. had to rely on credit cards to survive. By now Mr C.N. had built up debts of £30,000.
Although Mr C.N. originally thought that bankruptcy would be the answer, he was advised that as a bankrupt, he would not then be able to claim legal aid. Legal aid was vital for him to petition for a contact order to enable him to see his son. Mr C.N. sought advice from us in 2002. His circumstances were reviewed and he was advised to enter into an IVA. He needed £720 per month to cover his living expenses out of drawings from his business of £1000.00. The surplus income of £280 was offered to creditors as a monthly payment over the 5-year term of the IVA. He therefore paid back 56p in every pound he owed, writing off more than £13,000 of his unsecured debts. All interest charges and penalties were frozen so the debts stopped increasing.
In 2005, Mr C.N. received a lump sum from his business and with this, offered his creditors a final one off payment to end the IVA early. This was accepted and therefore Mr C.N. finished his IVA and was debt free some two years earlier than expected.
Key Advantages:
- Legal Aid was obtained
- Able to continue trading
- Affordable monthly payments
- IVA enabled Mr C.N. to concentrate on his business
If you are a sole trader with serious financial circumstances, contact us now on 0845 468 2395 or visit our contact page.
