Wednesday 20th of October 2010
Individual voluntary arrangement (IVA) answers could be a significant source of information for businesspeople across the country who are struggling with their finances.
According to statistics from insolvency trade body R3, 30 per cent of small companies are either very or fairly reliant on public sector contracts, while ten per cent expect to go bust if they no longer have access to such deals.
And with the government's Comprehensive Spending Review expected to include funding cuts in this division, insolvency practitioners predict some 27,540 corporate insolvencies in 2011, the organisation states.
Answers on IVAs could, however, offer a fresh start to self-employed Brits who have found their company struggling in recent months and have racked up personal debt on credit cards and loans in an attempt to boost its funding.
The measure may have you completely debt-free after around five years of hard work and discipline, thanks to merged monthly repayments that freeze interest rates on the deficit.
Steven Law, president of R3 comments: "Our members predict that 2011 will be a difficult year for small businesses and factors such as loss of public sector work will see company insolvency numbers start to rise."
By Kimberley Parsons
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Economic recovery may not mean that IVAs are no longer needed
