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IVA : I Am In An IVA But Can I Work For Myself?
If you are in an Individual Voluntary Arrangement (IVA) and you want to start working for yourself there is nothing that prohibits you from doing so, but there are some points that the debt specialists at myIVA-Adviser.com would like you to be aware of.
If there are any problems they are practical ones. Any one currently in an Individual Voluntary Arrangement (IVA) should think long and hard about the consequences of self employment.
To many, even those without debt, the thought of being their own boss is tempting, but the reality can be quite different. Being in an Individual Voluntary Arrangement (IVA) does not exclude you from self employment but you must be aware of the pitfalls and how they may affect your Individual Voluntary Arrangement (IVA).
Probably the most important thing to remember is that your monthly contribution into your Individual Voluntary Arrangement (IVA) must not be reduced. If you are changing from the security of a regular wage to a self generated income, the potential for income fluctuations will be increased, and if you cannot maintain your regular monthly IVA contribution your Individual Voluntary Arrangement (IVA) will be in danger of failing.
Another pitfall is that the terms of your Individual Voluntary Arrangement (IVA) state that you cannot obtain credit whilst in an Individual Voluntary Arrangement (IVA). This means that any enterprise you undertake must be financed through means other than credit. This may affect how you try and start your business, unless your idea can flourish without large start up costs.
Presumably the reason for starting your own business is to attempt to be successful and, therefore, reap the benefits of that success as a financial gain. If your new venture is a fabulous success you might generate extra income. In this case you would be expected to increase your monthly contribution so that the creditors can recover more of their debt.
This is not normally a problem, because the majority of people in an Individual Voluntary Arrangement (IVA) only ever want to repay as much of the debt as possible, but it is, nevertheless, a point to be borne in mind.
If you are currently in an Individual Voluntary Arrangement (IVA) and are thinking of starting your own business take enough time to consider the points above, make sure you are properly prepared and be practical about what you can realistically achieve.
If you are not in an Individual Voluntary Arrangement (IVA) but need further advice on how to deal with your debt call one of our experienced debt advisers on 0800 088 7503 or visit our specialistIVA websiteat www.myIVA-Adviser.com and download any of our free guides specially designed to answer your questions about your concerns.
