Can self-employed people get an IVA?

Self-employed people are fully eligible for an IVA. In fact, IVAs can be particularly beneficial for self-employed individuals because, unlike bankruptcy, they typically allow you to continue running your business.

The process is similar to an employed person's IVA, but your IP will need to assess your business income rather than a fixed salary. They'll look at your average earnings over recent months, business expenses, and any seasonal variations in income.

Your affordable payment will be based on your average surplus income after essential living costs and reasonable business expenses. If your income fluctuates, your IP may propose a flexible payment arrangement.

One key advantage of an IVA for the self-employed is that you can usually continue trading. In bankruptcy, certain professions and business activities may be restricted.

Self-employed IVAs may also include business debts if they are unsecured personal liabilities (e.g., sole trader debts). However, if your business is a limited company, the company's debts are separate from your personal debts.