How does an IVA affect your Business?

An IVA can have many effects on the way you run your business operations. If you own a business it’s important to consider many different debt solution options before committing to one.

The terms set forth in an IVA may be the best option for you instead of bankruptcy. Creditors will be more willing to work with you if they can receive more money out of the deal. If you file for bankruptcy your assets will be liquidated and in many cases the creditor can actually lose big time! The creditors may actually receive less money by doing this while you get to walk away debt free with a destroyed credit position.

It is possible to continue operating your business under an IVA approval. If it makes financial sense for your business to continue operating then it will be allowed. Your approval to continue running your business will depend on full disclosure of all financial records to the chairman and the creditors. A full business plan will need to be presented showing all your potential cash flows and expenditures. You’ll also have to prove that whatever issues got you into problems have been completely resolved.