Building a business can be tough. And you can struggle along the way - but going bust doesn't necessarily mean the end. We have this case study which shows how an IVA helped this individual save her business and avoid bankruptcy.
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 (sometimes called a full and final 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 without resorting to bankruptcy.
To find out the best options for your solving debt problems it's worth taking our online debt test, fill in your details and you'll be given an on-screen result showing the best option for you:
If you're facing business bankruptcy or need business bankruptcy advice rather than personal debt advice we recommend you contact a company which specialises is advising businesses on financial matters such as bankruptcy and company voluntary arrangements. One company we would recommend is Hodgsons Chartered Accountants.