Individual voluntary arrangements

Just when the business challenges are starting to make sense, personal difficulties can overtake you. Individuals may face financial difficulties arising from business activities.
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Personal financial difficulties

As part of our focus on business rescue and insolvency we are able to help with personal financial difficulties. 

Business related personal insolvency can arise, for instance, where creditors of a limited liability company have been personally guaranteed.

One option is an individual voluntary arrangement (“IVA”), this is a formal arrangement with creditors that legally binds on all creditors if 75% of those creditors voting upon your proposals agree. The arrangements can offer a flexible approach and are ideal when all stakeholders want to work together to find a solution.

IVA proposals need to be made via a Licensed Insolvency Practitioner and are often based on monthly contributions; however they can involve one-off settlements for a better realisation of assets.

Once approved an IVA may last for a period of up to five years (shorter if not a monthly contributions-based IVA). The Licensed Insolvency Practitioner (now called a Supervisor of the IVA) will monitor the debtor’s compliance with the terms of the IVA with annual reports being sent to creditors often with an annual dividend payment. 

Failure to comply with the terms can lead to IVA failure and subsequent bankruptcy.

IVAs are not suitable for everyone, and it is important that you take independent professional advice based on your own personal circumstances. 

Be very wary of so-called IVA factories/specialists that can end up selling you the product they have on the shelf regardless of your individual needs.

Scott Earrey

Manager

Norwich office contact details:

Ipswich office contact details:

Scott is an experienced advisor to individuals encountering financial difficulties and has over 25 years’ experience in dealing with insolvency cases of all types and sizes providing creative insolvency advice.  He specialises in dealing with personal insolvency including complex individual voluntary arrangements and bankruptcies.

Scott also has extensive experience of company voluntary arrangements and liquidations and is able call on his experience to provide the most appropriate solutions and advice to each situation.  Scott has led on an array of complex personal insolvency situations and over the years seen most situations that can occur in personal insolvency cases.

How can we help?

We understand the impact that such pressures can bring. The extent of the impact may depend on how the debts have built up and we can help with an assessment of your individual circumstances. Financial problems often have a big effect on personal relationships especially when the size of the problem comes as a surprise to one or both partners. Much of the information provided in the ‘services for business’ sections is relevant for the individual in business too.

Other options include:

  • Informal arrangements – these are useful, particularly when you are dealing with only a handful of creditors. We can help you negotiate with creditors who will readily understand what their alternatives are if they see that we are involved.
  • Debt management plans – managed by an outside agency these are informal agreements with your creditors to accept a lower monthly payment based on what you can afford and mainly deal with consumer debt. They are not legally binding and normally do not allow any of the debt to be written off. Used inappropriately they simply put off the inevitable and end in an IVA or bankruptcy.
  • Bankruptcy – this occurs when a trustee is appointed by the Court to sell your assets and distribute them to your creditors. For most people bankruptcy lasts for one year but the consequences of bankruptcy can stay on your credit history for longer. It is important that you understand the implications of becoming bankrupt and if there are any alternatives. But for many people it is the best option.
"Unfortunately, Gordon Dean Solicitors LLP got into debt in the 2020 pandemic, mostly with HMRC but recovered strongly making good profits but this was not enough to recover fully and having sought and failed to achieve further refinancing I visited insolvency practitioners McTear Williams & Wood who were very professional and arranged a liquidation on 1 April 2022. Gordon Dean Solicitors Ltd bought the assets of the firm and started trading from new offices. HMRC will get paid by the liquidators over the next few years."
Gordon DeanSenior Partner of Gordon Dean Solicitors Ltd
"Bethan and Tony acted not only with kindness and humanity, but professionalism! Also thanks to Chloe and Jamie for helping my staff so efficiently. We are not out of the woods, but grateful that you gave us another chance to start again by buying the business and assets back from the liquidator."
Architectural company
"We approached MWW at a very difficult stage - needing to complete an administration process quickly. It was an incredibly stressful time for us in general and Jo, Tony, Bethan and the team at MWW were a real pleasure to work with. They quickly jumped in to support us, gave us really clear and concise advice and helped mobilise the process really quickly to deliver a positive outcome via a pre-pack administration. We couldn't be more grateful for the support we received and I would have no hesitation in recommending MWW."
Company Director
"We have worked with McTear Williams & Wood in a number of turnaround situations. We rank their integrity and professionalism highly and really value their active desire to make businesses succeed wherever possible. Their attitude in working with other professional advisors to achieve this end is highly commendable."
Corporate Finance Accountant
"I am always impressed with the speed with which McTear Williams & Wood respond to a crisis (and with insolvency matters, it usually is a crisis). Our clients have received invaluable, practical, down-to-earth advice which has helped to steer them towards the right solutions to their problems. I am confident to recommend McTear Williams & Wood to our clients in any insolvency situation."
Insolvency Advice forAccountancy Firm Partner
"It was a tough decision to make but it had to be faced, I made the call and McTear Williams & Wood were very, very helpful the whole time. They helped us to explore all the possibilities to find any way forward and they helped us identify that liquidation was the best option for the business. Certainly McTear Williams & Wood made the process quite straight forward for us there was lots of help and lots of contact with them throughout the whole process."
Barry GodfreyManaging Director, Godfrey DIY Supermarkets
"Having traded successfully for over 20 years until recently it was devastating when we realised that our company would have to go into administration. But as we began to work with the team at McTear Williams & Wood believe it or not we wished we had been introduced to them at least six months sooner. That would have avoided months of heartache and the business would have been in a stronger position. As it was McTear Williams & Wood guided us through a pre-pack which saved the profitable stores and the restructured business is now growing again."
Managing Director, National Retailer
"After meeting with Andrew McTear we both felt we had met someone who we could put our trust in and who would leave no stones unturned to help us rescue our business. We had been given two insolvency practitioner names and the other firm just wanted to put the company into administration. As things turned out that would have left any purchaser of the business and assets with significant employee liabilities which would have killed the deal and all the jobs would have been lost."
Finance Director, Joinery Company
"I am aware of the sterling work carried out by this committee and of your role on it. I would like to take this opportunity to thank you for your valued contribution over the last two or so years. Your endeavours have made a significant contribution to the success of the committee in setting up and reviewing the Straightforward Consumer IVA Protocol and I and my Policy colleagues are grateful for the considerable time you have spent in this role."
IVA Standing Committee Member
"McTear Williams & Wood were called in to help our company when it went into Administration. They took early decisive action to reduce costs, maintain the loyalty of customers and key staff and find a viable way forward for our company. They conducted themselves at all times with the utmost professionalism, integrity and objectivity. I found them approachable, well-connected, responsive and always value-adding. McTear Williams & Wood have been instrumental in turning around the company's fortunes."
CEO, Manufacturing Business
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