A Business IVA is a legally binding agreement between a business and its unsecured creditors for them to be repaid a proportion of what they are owed spread out over a period of time which can be for as long as 5 years. How much the business will have to repay will depend on its financial position and on its future cash flow expectations.
At the end of the IVA process, any unpaid debts are written off. Therefore the business will be in a very strong financial position as it will be debt free.
Whilst the business is in the IVA the owners continue to run the business as they did before. Usually their only obligation is to make the periodic payments into the IVA.
The IVA is run by a licenced insolvency practitioner who is referred to as the IVA Supervisor. This will be someone who works for our company.