Tuesday 29th of September 2009
An individual voluntary arrangement (IVA) could be the answer for hundreds of businessmen in the struggling IT sector.
Bankruptcy is a problem for IT firms, with figures from credit reference agency Experian showing that 59 companies went out of business in August alone.
That has caused some directors and owners of companies in the IT channel to run up large personal debts.
If that debt exceeds £15,000, an IVA could be the ideal solution, as bankruptcy would mean that they have to relinquish their director position.
An IVA would allow businessmen to arrange a repayment structure with their creditors to run for, typically, five years.
Adam Harris, chief executive of IT trade body the Technology Channels Association, tells CRN: "With the way credit lines have been cut, resellers have to take more of a personal gamble to ensure continuation of their businesses."
IVAs can help to write off as much as 70 per cent of your personal unsecured debts.
Chek Whyte, the former Secret Millionaire, had his bid for an IVA rejected and was declared bankrupt - something he wanted to avoid so he could keep his directorship.
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