Monday 24th of August 2009
Chek Whyte, the property developer and former Secret Millionaire, is putting together a second proposal to avoid being declared bankrupt by instead paying his creditors back through an individual voluntary arrangement (IVA), it has been revealed.
As an entrepreneur, Mr Whyte does not want to be declared bankrupt as this could impact upon his ability to lead business ventures in the future.
Instead, he has written to his creditors to ask for their support for a new IVA, which would allow him to pay off his debts while continuing to trade, the Nottingham Evening Post reported.
He told the newspaper: "We are working hard to bring the [HM] Revenue [and Customs] around to our way of thinking and we are going for another IVA."
According to Mr Whyte, the IVA would allow creditors to receive 31p for every pound they are owed, while the final amount would be received once the properties in his portfolio are sold.
Britons in Mr Whyte’s position may want to avoid bankruptcy and pay back what they owe through an IVA for a number of reasons, including being forced to stop trading and losing professional status.
By Rachel Powell
- 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
- IVA questions might help Brits avoid financial crisis
