setting up a business under an iva

joshdan

Hi new to this and could do with some advice,

MY husband has an iva and was made redundant a few weeks ago, he has the opportunity of work but would involve him setting up his own ltd company and being self employed. Does anyone know whether you are able to set up a company whilst you have an iva?

Thanks in advance

Charco_2

There is no reason why you cant be self employed in an IVA... infact IVAs were originally intended for entrepreneurs!

Have you spoken to your IP yet?

Did your husband receive a redundancy payment? Are you currently able to afford your monthly contributions to your IVA?

joshdan

thanks charco

He has spoken to his i p they werent very helpful about the fact that he had been made redundant but have said he wont fail his iva unless he goes over 3 months into arrears.
He hasnt received his redundancy pay yet as he has to claim from the government.
Cant afford the repayments at the moment but will be able to catch up either with redundancy or with money from the new job.

Charco_2

As long as he doesn't go 3 months behind????

And what if he does????

He has informed the IP that his circumstances have changed and he will do his best to maintain his repayments... in the mean time, the IP does NOT have a duty to FAIL the IVA if it goes past three months, he simply has a duty to keep an eye on it!

When he does receive his redundancy payments its worth looking considering your options with it b efore simply handing it over to your IP. The IP will of course be saying "gimme gimme gimme now!" but there no point handing it all over if you don't know where next months repayment is coming from and so on!

Lump sum???

joshdan

thanks again

Have looked into what to do with the redundancy and a lot of it will be taken up with paying things that we are behind on since he was made redundant as he didnt get paid.
He did tell his ip this but they just said that he had to try and make the payments, although on his annual review last year they said we could reduce the payments as income had been reduced. Think i may phone myself and see if we can agree a reduced payment until things are sorted.

Thanks again for the advice.

Max_1066

Do bear in mind that if you become self employed even with a Ltd company then the IP is likely to want to look at the company accounts as part of any future review.