Can a business enter into an IVA?

IVA QuestionsCan a business enter into an IVA?
anonymous Staff asked 12 months ago

I run a small business that owes money to HMRC (VAT) . I know that an individual can enter into an IVA, but can a small business?

1 Answers
IVA Specialist Staff answered 12 months ago

The legal status of your business determines which type(if any) of IVA is appropriate for your situation.
If you are a Sole Trader (self employed), then any unsecured debts that have been generated as a result of trading can be included in an IVA; they are treated no differently to your unsecured personal debts.
If the business is a partnership or limited liability company then a Partnership Voluntary Arrangement (PVA) or Company Voluntary Arrangement (CVA) may be appropriate.
You must be able to demonstrate that the VA offers more value to the creditors than liquidation, that the business model and future estimated earnings are viable and that you have sufficient working capital to continue trading.