We have a page on the site outlining those things but I'll give you a quick summary here:
When you complete an IVA proposal you can request to carry on trading but, of course, it will depend if it is practical. The finances of the business will be disclosed to the creditors in full. You could show the creditors a business plan covering all your financial concerns and cash flow. Make sure it demonstrates that any previous problems have now been resolved. If you can do this it will help show that your business is still viable.
If the business is simpler and problems are less complex you will usually be allowed to continue trading as normal. This will happen when you have assets to liquidate. It is easy to see that it would be in the creditor’s best interests to allow you to keep earning in order to pay the IVA repayments.
Having the finances of your business disclosed to anyone isn't the greatest thing but it could be better than the alternative. Look into it before it becomes a problem though. That's the best advice I can give.
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( 3 / 237 )We have an IVA Facts & Definitions page up on the site now if any of the things I've been going over in the blog don't make sense.
You can get further IVA advice by contacting one of our IVA specialists.
Tomorrow I'll talk about IVA and your business.
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( 3 / 242 )I found this Herald Express article regarding bankruptcy and IVAs.
The figures released by the Ministry of Justice show that nationally the increase was 32 per cent in England and Wales, compared to the same quarter in 2007.
For the same period there was an increase in the use of Individual Voluntary Arrangements (IVA) which rose 12 per cent compared to the previous year.
Administrators KPMG's analysis of the latest official insolvency figures shows that nationally 15,358 people successfully petitioned the court to bankrupt themselves and 10,467 agreed an IVA in the quarter.
John Bangham, director of personal insolvency for KPMG's Plymouth office, said: "This means that a total of 25,825 people took the potentially life changing step of placing themselves into personal insolvency; this proportion of people choosing to 'jump before they were pushed' represents an incredible 85 per cent of all personal insolvencies."
That's an interesting analogy I never really thought of. I guess it is a bit like going off a cliff but the sooner you address your problem the sooner you can get on with your life.
Many people want to buy homes or cars and you need to build up a credit rating to do this (or pay a LOT more). The sooner you sort your finances the sooner you can start thinking about the future.
Have a good day everyone!
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( 3 / 244 )Today I'll outline the basics of the IVA process.
It all pretty much starts with you meeting with an Insolvency Practitioner and going over your financial situation.
If it is decided that an IVA is your best option than the IP will then put together a manageable repayment plan. This will then be submitted to the creditors for consideration, who may request amendments if they are dissatisfied with the proposal in its current form. Repayments have to be affordable and allow you to live off the remaining income; otherwise the IVA will inevitably fail which is not in the interest of either party.
If you're wondering what debts are included within an IVA, it's normally any unsecured debts. These include but are not limited to:
* Credit cards
* Store cards
* Catalogues
* Personal loans
* Student loans
* Overdrafts
* Outstanding balance after vehicle or home repossession
* Business loans for which you are liable
For more information about the IVA Process or on starting an Individual Voluntary Arrangement take a look at those sections of the site. Have a good day!
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( 3 / 245 )Yahoo Finance reports more job cuts for Vodafone. It's a tough time right now and my heart goes out to anyone looking for work or recently out of work.
Vodafone has seen conditions worsen in the UK and other key markets as the recession has deepened, hitting sales of handsets.
The group, which has 19.1 million customers in the UK, posted revenues of £10.47bn for the three months to December 31 - up 14.3% with exchange movements.
Vodafone - which twice scaled back profit forecasts last year as conditions worsened in the UK and other key markets - said the pound's slump had boosted full year revenue expectations.
But the group also warned of job losses as it worked to cut £1bn in costs by March 2011.
At the time, Vodafone declined to reveal the number of roles that would be affected, but said it would give more details in May.
Not particularly happy news for Monday. I hope everyone is having a good day although it might be hard for some of you. Talk to you tomorrow.
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