Self Employed IVA

A self employed individual voluntary arrangement is similar to a consumer IVA in many ways but with some significant differences to recognise the essential employment status of the petitioner.

Like a standard consumer IVA, a self employed IVA is a legally binding agreement between you and your creditors.


It will allow you to pay off a proportion of your debt over a fixed period of time and at the end of which any remaining debt will be written off.


The IVA still has to be overseen by an insolvency practitioner who will have to put together a proposal for creditors to vote on.


A self employed IVA has to include a business cash flow projection for the next 12 months with strong emphasis placed on the assumed income and expenditure for the business.


The aim is to show creditors that the business is profitable and you’ll be able to keep up with the agreed repayment schedule.


The level of monthly payment for a self employed IVA can be flexible, unlike a consumer IVA, to take into account any seasonal fluctuations in income but the amount paid over a year will be the same as if you’ve paid 12 equal monthly payments so creditors won’t lose out.

Frequently asked questions about IVAs

What are the benefits?

All the benefits from a consumer IVA apply as well as:-

  • The business can keep trading and still use existing suppliers or lines of credit
  • You can keep any essential stock, machinery or tools required to run your business
  • Repayments can be structured to deal with seasonal or cash flow fluctuations
  • Business assets will be protected

Any negatives?

The negative considerations for the consumer IVA also apply as well as:

  • Your name will be included on the Insolvency Register
  • While some credit lines remain open, you won’t be able to use store or credit cards
  •  It’s likely you’ll need to open a new bank account that isn’t linked to your business
  • Does not apply to businesses in Scotland