Business Advice

Requirements for an IVA to be successful

If you are running a business and you are faced by financial problems, you may have heard that an individual voluntary arrangement is the best way out. However before you jump on the idea there are certain requirements you will need to satisfy. Remember the proposal to put your business in administration is mainly aimed to benefit your creditors. First, there are certain documents you will be required to provide. If the IVA arrangement is for individual debts, you need to provide your salary statement, endowment policy surrender value and HP agreement or car finance. For a business, you have to provide documents detailing your financial history, reasons for the financial crisis and property valuation. Once you have these, you can seek the services of insolvency practitioners who will review the financial status of the business. The practitioner is supposed to meet with your creditors in order for them to vote for or against the arrangement. During this meeting, the creditors can also make amendments to the initial proposal. At least 75% of the creditors must agree with the terms of the IVA.