Interlocking IVA's - Case Study & Testimonial
Situation before IVA
| Amount owed to HM Revenue & Customs | £118,458 |
| Total Unsecured Debt (including the above) | £140,398 |
Approved IVA Solution
| 60 x monthly contributions of £1,000 | £60,000 |
| Introduction of lump sum following sale of property | £50,000 |
| Total repaid by client | £110,000 |
| Dividend to creditors | 69 p in the £ |
Case Study & Testimonial
“We began trading as a business offering lawn treatments in 1995. Trade fluctuated according to the weather, but we believed that the business was on the whole profitable. Our business is part of a franchise agreement, which stipulates the level of income which must be generated in order to comply with the terms of the agreement.”
“Despite the fact that trade had been good, we began to struggle to find the necessary work due to the increased competition and we found ourselves in debt as we poured money into the business. We then found out that our accountant had failed to prepare our accounts and we had material arrears of PAYE, VAT and self assessment tax.”
“HM Customs & Excise then levied distress for their arrears of £40,172 in April 2004 and the Inland Revenue subsequently issued a County Court Summons in May 2004 in respect of outstanding PAYE/NIC and self assessment tax, which amounted to £32,235.”
“We approached another accountant who put us in contact with Budsworth & Co. As HM Customs & Excise were threatening to levy distress, proposals for IVAs were quickly drafted and creditors eventually agreed to our offer of £1,000 per month over 60 months plus a lump sum of £50,000 which was being generated from the sale of our property.”
“We were not in a position to be able to meet any of our tax or VAT commitments. Being in the IVA has given us breathing space to get our finances back on track and we are now in a position to afford our tax commitments. Our tax affairs are now up to date and we have been able to continue trading successfully. None of this would have been possible without the invaluable help and advice from The Business Debt Advisor.”
The Next Step
The options for a financially distressed business need to be very carefully considered. Simply forward your details on our Contact Form and we will contact you. Alternatively ring us on our FREE ADVICE LINE 0800 781 0990.
All debt solutions should be very carefully considered. Fees will be charged if a solution is taken in order for us to advise and administer the most appropriate action - all fees will be outlined during your consultation. Retained payment may place you further into arrears. The Business Debt Advisor complies with the Consumer Credit Act and you have the right to a cooling off period of 7 days. It is likely that your ability to obtain further credit in the short term will be affected and this may also be the case over the medium to long term.