Sole Traders & Partnerships – Business Rescue
We work with small and medium sized businesses across Cardiff, Newport and South Wales. We arrange business Individual Voluntary Arrangements (IVA) and Partnership Voluntary Arrangements (PVA).
HMRC and trade creditors prefer to receive structured payments from an IVA or PVA rather than receive nothing from a bankruptcy. We work with you to put a realistic plan in place to allow you to trade on and make fixed monthly payments against the debts, after meeting your business and domestic needs.
Call us for free professional advice.
The earlier you take advice the more likely it is that the business can be rescued. A Voluntary Arrangement will:
- write off debt you are unable to repay
- allow you to make fixed monthly payments
- stop further interest and charges
- prevent Court action and bankruptcy proceedings
Call us for free and fully confidential advice. We have offices in Cardiff and Newport where we will sit down with you, review the paperwork and advise you of your options.
We offer the following services to sole traders and partnerships:
Individual Voluntary Arrangement (IVA):
An Individual Voluntary Arrangement (IVA) can allow a sole trader to come to an arrangement with their creditors which is manageable and allows them to repay what they can afford.
The most common type of arrangement allows an individual to make agreed monthly payments to their creditors over a fixed period of time, often five years.
An IVA can only be arranged by a licensed Insolvency Practitioner. The process begins by reviewing your trading income against your expenditure and to work out what you can reasonably afford to pay to your creditors. The business will be reviewedto find out whether and changes can make it more profitable.
An IVA Proposal is drawn up to put to the creditors. Essentially this explains to the creditors why you need to enter the IVA and why this is a good outcome for them compared to the costly bankruptcy process.
A meeting of the creditors is then held, which is generally a ‘paper meeting’ where the only votes are cast by post. If the proposal is accepted by the creditors the IVA begins and you are protected from creditors taking any action against you or harassing you. Your only commitment is to make the payments into the IVA as agreed and Whiteoak Morris will deal with all of your IVA creditors.
Advantages of a IVA:
- It provides protection from your creditors. They cannot take legal action against you or your sole trading business. They are prevented from chasing you for payments and they will stop contacting you.
- The overall debt may be reduced.
- You will only pay into the IVA an amount you can afford.
- You only have to think about making one payment each month rather than juggling many creditors.
- The IVA will be completed after a fixed number of years, rather than making payments against balances which never seem to reduce.
Only a licensed Insolvency Practitioner can arrange an Individual Voluntary Arrangement. Whiteoak Morris arrange IVAs for clients in Cardiff, Newport and across South Wales.
Partnership Voluntary Arrangement (PVA):
A Partnership Voluntary Arrangement (PVA) is a way for a trading partnership to enter a financial agreement with its creditors. The most common type of PVA provides for the partnership to make monthly payments over a fixed period of time. The PVA process can also be used to make a one-off payment to settle the partnership’s creditors. A PVA can reduce the total paid to creditors and can provide for a longer repayment period.
A PVA is a way for a partnership facing financial difficulties to redraw its credit obligations to make them manageable. The process begins by discussing the viability of your business to ensure the financial arrangement can be achieved.
A PVA proposal is then drawn up with Whiteoak Morris and issued to creditors to vote on. If the proposal is accepted the partnership is protected by the PVA as long as it meets it’s obligations under the agreement.
Advantages of a PVA:
- The PVA does not need to be disclosed to customers and is not advertised.
- The partners retain control of the business and continue to trade.
- The partnership debts may be reduced and the repayment periods extended.
- It provides a better return for creditors compared to the insolvent winding up of the partnership.
Only a licensed Insolvency Practitioner can arrange a Partnership Voluntary Arrangement (PVA). Whiteoak Morris arrange PVAs for clients in Cardiff, Newport and across South Wales.