Do I qualify for an IVA?

Self-employed IVAs are a popular debt solution, as they allow you to keep trading while regaining control of your debts. There are a few things required in order to qualify.

A self-employed IVA could be available to anyone who meets all the following criteria:

  • Normally completes a self-assessment tax return
  • Struggling to meet their agreed payments with their creditors
  • Lives in England, Wales or Northern Ireland, or has a business in these countries. A different solution is available to people living in Scotland – it’s called a Trust Deed
  • Owes at least £7,000 in unsecured debts over 2 lines of credit
  • Can afford a minimum monthly payment of £50 to their unsecured creditors

If you think a self-employed IVA might be an option for you, get in touch with PayPlan.

We can provide you with FREE advice on a wide range of debt solutions. Call us FREE on 0800 280 2816 or use the ‘Get advice now’ button to request a callback from one of our debt advisers.

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A self-employed IVA is available to all individuals who are required to submit a tax return, including;

  • Sole Traders – individuals who work for themselves, offering either goods or services
  • Buy-to-let landlords
  • Construction Industry Scheme(CIS) Workers
  • People working in a partnership with other sole traders
  • Directors of Limited Companies

When you first get in touch with PayPlan, we’ll talk you through all your options.

If you could afford to repay your debts in less than 5 years, we may suggest a Debt Management Plan (DMP).

However, it’s important to note that if you opt for a DMP, your creditors don’t have to freeze interest and charges – so it could take you longer than 5 years to repay your debts. Also, if you opt for a DMP, your unsecured creditors could still decide to take legal action against you if they wish.

Another alternative is bankruptcy, but with this option, any business assets of value are likely to be sold, and any employees are likely to be dismissed – so it will be difficult to continue trading.

Visit our bankruptcy page for a full comparison between bankruptcy and self-employed IVAs.

Our specialist self-employed IVA team consists of 60 staff – headed by a Chartered Accountant and a licensed Insolvency Practitioner with over 18 years’ experience of advising businesses who are experiencing financial difficulties.

You can find out which debt solution is best for you by contacting PayPlan.


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