If you wake up dreading the bills that will drop through your letter box then it is time you sought help. People get into debt for many reasons and it does not mean that you have been reckless or inept at handling your finances. Unforeseen circumstances, such as divorce or death of a loved one, can all have repercussions for your financial situation.
If you add the current economic recession to the equation, clearly being in debt is nothing to be ashamed of. The trouble is that people have a tendency to put their heads in the sand hoping that the whole nightmare will disappear. The letters that you are ignoring are only accumulating more interest, so it is imperative that you seek business debt advice sooner rather than later.
Once you have sought advice and a business debt analysis has been carried out, an Individual Voluntary Arrangement (IVA) might be an option helping you avoid bankruptcy. It is legally binding specifically designed to help a person struggling to pay off hefty debts.
If you owe in excess of about £18,000 you may benefit from an IVA. The arrangement will either agree that you can repay as much of the debt as you can afford in one lump sum or by reduced payments spread over five years. The agreement with your creditors halts the accumulation of any more interest or late payment charges and, on expiration of the agreement, any debt outstanding is automatically discharged.
Sole traders, partnerships and directors can benefit from IVAs although a limited company itself is not eligible. A company director who enters into an IVA can continue to act as director which would not be allowed under bankruptcy law.
If you need sound business advice, contact Cooper Matthews where we will suggest solutions to help turn your business around.