Bankruptcy affecting your business

IVA prevented business failure

Building a business can be tough: Miss H, a director of her own business, taking no salary found herself in £43,000 of debt within 3 years.

Miss H did not want to become bankrupt because it would cause the failure of her business. Miss H did not have a property, so re-mortgage was not an option: her family were, however, prepared to help. Recommended to ClearDebt by a friend, our IVA gave Miss H another chance to get her business off the ground.

In an IVA generally, a fixed payment is paid each month by the debtor but, as Miss H's family were willing to give her £15,000, ClearDebt proposed a lump sum IVA. This meant that 30p in every £1 could be repaid (a lot more than would be available to the creditors in bankruptcy).

The creditors accepted the proposal, the money was distributed between them, and Miss H was debt free within 6 months and could continue trying to build her business.

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