SOLE TRADER / PARTNERSHIP INSOLVENCY
Business Individual Voluntary Arrangement (IVA)
A sole trader or partner can enter into a formal arrangememt with his or her creditors to pay them as much as they are able to afford over a 5 year period in full and final settlement of their debts. This formal arrangement, or IVA, enables interest charges to be frozen, debts often to be significantly reduced, protection to be given from creditor actions or bailiffs and bankruptcy to be avoided. Sole traders and partnerships can continue businesses with a viable future after entering into an IVA.
Bankruptcy
Bankruptcy is one way of dealing with debts you cannot pay. The bankruptcy proceedings:
free you from overwhelming debts so you can make a fresh start, subject to some restrictions; and
make sure your assets are shared out fairly among your creditors.
Anyone can go bankrupt, including individual members of a partnership. There are different insolvency procedures for dealing with companies and for partnerships themselves.
Further information about IVAs and bankruptcy is available by following this link, Click on logo above.
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