You can take advantage of business rescue – even if you’re self-employed or a partnership. Our Sole Trader Insolvency advisors’ approach is to listen to your challenges and take time to understand your aspirations for the future. Then we’ll work with you to create a plan that could help you meet your goals.
Two common Sole Trader Insolvency solutions are an Individual Voluntary Arrangement and Bankruptcy.
What is an Individual Voluntary Arrangement?
An Individual Voluntary Arrangement (IVA) is a contractual agreement between you and your creditors, agreeing new payment terms for your outstanding debts to them. It’s also a preferable alternative to bankruptcy.
As well as rearranging your debts, an IVA will buy you precious breathing space to create a business rescue plan. Together, we’ll look at what’s working for you and what’s not. What the most pressing commitments are and what can be dealt with a little later. It’s a holistic plan of action that tackles the present challenges and prepares you for the future.
As part of this process, we’ll work with you to tackle your finances. Together we’ll work out what can be offered to your creditors to make an IVA worthwhile for them. The next step is for us to put together a proposal stating the ‘pence in the £’ offer and highlight why an Individual Voluntary Arrangement has been chosen over bankruptcy.
To take the pressure off you, we’ll organise the necessary meetings and paperwork for you. If your proposal is accepted, then our role turns into a supervisory one. We perform regular reviews throughout the year and produce an annual report, where the distributions will be made to creditors.
We provide free IVA advice and no-obligation consultations.
What Is Bankruptcy?
When personal debt becomes overwhelming, Bankruptcy may offer a way to reset your financial situation. While it’s often viewed as a last resort, for many people it provides an opportunity to draw a line under persistent money worries and begin rebuilding.
Bankruptcy is a formal legal process designed to deal with debts that you can no longer afford to repay. Once a Bankruptcy Order is made, your financial affairs are handed over to an official receiver, who assesses your situation and arranges for the valuation and sale of any assets that can be used to repay your debts. This offers a clean break, allowing you to begin planning for a more stable financial future.
In most cases, Bankruptcy lasts for 12 months. After this time, you’re released from any remaining debts covered by the order, with the Bankruptcy itself remaining on your credit rating for six years.
We’re Here to Help
If you’re unsure whether these Sole Trader Insolvency solutions are right for you, our licensed insolvency professionals can offer straightforward, confidential guidance. We’re committed to helping you find the most effective way forward—whether that involves Bankruptcy, an Individual Voluntary Arrangement or another solution.
