Tuesday 25th of August 2009
An entrepreneur has told how he chose to undertake an individual voluntary arrangement (IVA) when he found himself in financial difficulties.
Speaking to the Telegraph, Bruce Palmer, from Maidenhead, Berkshire, a businessman in the chauffeur sector, said in 2004 company debt left him in the red to a tune of £37,000.
While such a large figure could be dealt with by going bankrupt, entrepreneurs like Mr Palmer may prefer an IVA to allow them to continue trading.
The debt soon grew to £56,000, pushed up by loans he had taken out. An IVA can, however, freeze the interest on unsecured loans.
"I can’t pay [my creditors] off overnight. But I have been paying them for the last four years through an IVA," he told the newspaper, adding that he has never missed a payment.
Former Secret Millionaire Chek Whyte has recently told the Nottingham Evening Post that he is going to draw up a second IVA agreement proposal in the hope he can continue trading and avoid being forced to stop doing so by going bankrupt.
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
- IVAs could repair the damage of loan sharks
