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IVA APPROVED FOR BARRISTER

Published on:February 23, 2015Author:The Debt Advisor

More recently it has become increasingly difficult to obtain approval for IVA’s for self employed professionals where there HMR & C are a creditor. HMR & C have been insisting that where the individuals have equity in their property, this needs to be introduced in year 1 rather than year 5 as is the norm.

The Business Debt Advisor act for numerous self employed professionals and this change in attitude from HMR & C has been particularly worrying as there are no lenders at present who will look at refinancing equity in year 1 of an IVA. The team at The Business Debt Advisor are therefore very pleased to have negotiated an approval of an IVA for a Barrister who was referred to us who had encountered a build up of debts due to both declining and fluctuating income as a barrister.  Life as a barrister can be very tough as they have pay VAT on invoices raised whilst it can take many months to be paid by the Crown or by instructing solicitors. The Jackson Reforms have also seriously impacted on the incomes for solicitors who then look to pass these cuts onto barristers.

In the case in question, the barrister was able to introduce a 3rd party sum at the outset of the IVA in lieu of her equity in her residential and investment property. Her proposals which offered a return of 39p in the £,  were approved by the requisite majority of creditors and this has freed up a considerable chunk of the barristers monthly income which was having to be used to keep her debt “ticking”. As the IVA also includes the next year’s Self Assessment Tax, the barrister has at least 7 months to put together adequate sums to ensure she can pay the following year’s Self Assessment tax on time.

After consideration of all the available options, it was decided that an Individual Voluntary Arrangement (‘IVA’) was the most suitable. The debtor owns her residential property and also an investment property with equity in each, and the proposal put forward included a lump sum contribution of £9,000 from a third party in lieu of the debtor’s net worth in these two properties.

If you are struggling with debt issues, whether these are business or personal debts, The Debt Advisor Ltd which incorporates The Business Debt Advisor can help.  There are a range of solutions available which include both formal and informal solutions such as Debt Management Plans (DMP)Individual Voluntary Arrangements (IVA),  Bankruptcy as well as solutions for Businesses. All debt solutions should be carefully considered. Call us today on 0800 0851 825 to speak with one of our advisors. If you’re calling from a mobile you can reach us on 0333 9999 600.

All debt solutions should be very carefully considered. Fees will be charged if a solution is taken in order for us to set up a plan and maintain it – all fees will be outlined during the consultation. Retained payment may place you further into arrears.  It is likely that your ability to obtain further credit in the short term will be affected and this may also be the case over the medium to long term. Calls to our free phone number from mobile phones and other networks may be charged.

There is also free debt help and advice available through a variety of debt charities. For more information, we recommend you visit www.moneyadviceservice.org.uk.

The Debt Advisor is regulated by The Financial Conduct Authority Reg: 606669 and is also a member of the DRF and we adhere to their codes and standards.