Monday 23rd of August 2010
Individual voluntary arrangement (IVA) answers may come in handy for self-employed adults who are finding it difficult to get by because of their struggling enterprises.
According to Chris Gorman, spokesman from the media and PR office at the Forum of Private Business, a large number of companies could find themselves in serious amounts of debt if they are unable to access finance from banks.
"It can mean that they end up going out of business and it could also add to inflation in wider terms and make it more difficult for everyone," he says.
And this may lead to growing numbers of self-employed Britons trying to secure personal loans to pump into their company, leaving them facing a deficit themselves.
Answers on IVAs may, however, provide support to those of you who have taken out credit to help your business stay afloat.
The method of insolvency can only help with unsecured loans, but may assist you in gradually erasing the cash you owe over a period of five years.
This could leave you completely debt-free, with the peace of mind of knowing your business will not jeopardise your personal finances should it get into trouble.
By Hayley Jones
- 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
- Unsecured loan interest rate rise could be reduced with an IVA
