Own business and IVA

Bob · Joined: 30 Nov 2006 Posts: 1

Hi there,

I am hoping you might be able to help me. I am a chef and have recently set up my own bistro in Blackpool, however, in doing so i have put myself in a lot of debt, like £65,000 worth ( i experienced loads of unexpected problems with the building)

My bills are just mounting up and the majority of the tables are empty each night now we are reaching the quiet period of the year. I also dont have enough xmas and New Year bookinds to see me through the winter.

I'm not sure how much longer I will be able to go on, im constantly getting letters and phone calls from creditors. I really don't want to loose my restaurant and go bankrupt, I think i can give it a go.

What are my options?

Thanks

Bob

Andrew · Posted: Mon Dec 04, 2006 6:06 pm Post subject: IVAs and your own business

This reply can only offer very general advice - you should, in the first instance, be as open as possible, as quickly as possible, about your situation with your existing professional advisors. This reply does not try to deal with the specifics of your case: It's far too complex and there is far too little information here.

First, if your business is a limited company, you can't use an IVA to help your business situation. You may have personal debt problems as a result of your business which an IVA might help, but it's unlikely that an IVA will be possible unless you can show a predictable future income.

The business equivalent of an IVA (called a Company Voluntary Arrangement or CVA) may be possible - but you need to get specific advice.

IVAs were originally designed to help the self-employed and you can use a procedure (called an interim order) to obtain a stop on creditor action to give you time to put together a workable IVA proposal together.

However, before looking at rescue solutions for your business, you should strongly consider getting advice as to whether you have a business that can be rescued - or whether it's time to stop adding to your debt to keep something going that's really not viable.

I'm sorry if this isn't what you want top hear. Having been in a similar position to yourself some years ago I know just how difficult it is to let your dream go and, of course, it may not be necessary: Talk to your advisors as soon as you can.

Good luck,

Andrew