Individual Voluntary Arrangement

The director had operated a very successful business and received significant income from the company. He reinvested this income in a number of business opportunities including property redevelopment. Certain investments did not pay off and became a major financial burden. Whilst trying to manage his financial affairs credit card debt built up and he also fell into arrears with his personal tax.

The Director approached Clark Business Recovery through his accountant for independent advice. As a result we were instructed to assist in putting together an IVA proposal in order to provide protection against legal action directly from creditors and to agree a formal payment plan over 5 years.

The Director was also keen to avoid bankruptcy to allow him to continue to operate the limited company and to retain control of the 4 properties he owned.

An agreement was reached with his creditors that he would pay his surplus income into the IVA over a period of 5 years and should any of his properties be sold, any surplus from the sale be paid into the IVA. The approval of the IVA has allowed the Debtor to continue to earn a living and retain control of his assets unlike in bankruptcy.