An individual voluntary agreement, or IVA for short, is a binding legal document that acts between any unsecured creditors and your business. Indeed, in the event that your financial situation becomes untenable, then an individual voluntary agreement will stop any unsecured creditors from taking legal action against your business, especially relating to the application for and enforcement of legal action, including county court judgements if you fail to pay your debts. An individual voluntary agreement is important because it can help to protect your business assets from seizure by unsecured creditors or from passing your debt onto a third-party collection agency which could incur additional costs. Therefore, if your business is experiencing financial difficulties, then you should understand the advantages and disadvantages of entering into an individual voluntary agreement to prevent your business from becoming bankrupt.
Understand the agreement
If your business is experiencing financial difficulties, then an individual voluntary agreement may be the solution that you need. Indeed, if you are having cash flow problems, then you can attempt to enter an individual voluntary agreement with your creditors, so that they will accept a monthly payment which is affordable to your business and you can clear any outstanding debt payments without going into bankruptcy. In addition, provided the individual voluntary agreement is maintained for the entire duration of the period which has been established for repaying the debt, any unsecured debt can be written off while you may eventually result in paying a smaller amount than the original debt.
History of individual voluntary agreements
Individual voluntary agreements were established during the 1980s as a way of preventing small businesses from going bankrupt, giving such businesses extra financial help in the case of negative operating performance. However, over the last decade since the financial crisis of 2008, individual voluntary agreements have become increasingly popular. Indeed, individual voluntary agreements can be applied for by any business which has some level of unsecured debt.
Setting up an individual voluntary agreement
Furthermore, when you choose this alternative solution to bankruptcy, then you can set up an individual voluntary agreement with specialist firms in your area offering consultancy services, especially those specialising in business recovery services and other liquidation issues. Therefore, if you are looking for assistance with an individual voluntary agreement, then you should search online for your local firm of experts as soon as possible.
Choose the right company
Finally, if you are looking to set up an individual voluntary agreement with your creditors, then you should search for the best provider of advice that you can find in your local area. In order to find the best choice for your particular situation, you should call a number of insolvency practitioners who can give you the advice you need to prevent your business from going bankrupt. If you want to find the best company then you can search for reviews of testimonials from former customers to make sure you choose the right company for your situation.
Therefore, if you want to prevent your company from going bankrupt, then you should consider getting impartial and professional advice from a company which can provide you with business recovery and liquidation services.