IVA
leaves Ms A and her creditors
very happy
In
April 2001, Ms A found herself
in financial difficulties and
came to our associate insolvency
practitioners Clarke Bell for
help.
(Keeping her anonymity is one
of the many benefits of an IVA.)
She had been successfully running
a market stall for several years
until adverse trading conditions
resulting in her making a loss
year after year. As a result,
she decided to sell her stall.
She
and her partner then decided
to earn their living by buying,
renovating and selling properties
– whilst living off the
money generated from selling
the stall, along with a bank
loan and by making slow payments
to their creditors. When they
sold properties they would repay
the mortgage, repay the bank
overdraft, pay their creditors
and use any money left over–
together with another mortgage
– to buy the next property
for development.
After
several years, however, she
and her partner split up. Ms
A was then unable to continue
the property developing on her
own. She was left with a number
of debts and was worried about
how she was going to pay them
all off.
For
personal and ethical reasons,
she was keen to avoid bankruptcy
if at all possible. She also
felt that her creditors would
not be satisfied with their
return if she went bankrupt
– which could lead to
more distress for her.
