Where debt is held personally rather than in a limited company name it can be more troublesome.

This is principally for the reason that the personal assets of the business owner, including their home, can be under threat.

A partnership voluntary arrangement is used where there are more than one business owners trading in partnership and an individual voluntary arrangement is used for one person alone. Equally a series of individual voluntary arrangements can be used and this can often be the case in relation to either business partners or other partners.

In the same way as a company voluntary arrangement 75% of the value of those who vote need to vote in favour of any proposal. Most proposals again involve monthly payments over a 5 year period after which time the debt is discharged in full. It is not normal to use this solution if the debts are for less than £15,000. It is a useful tool as it avoids bankruptcy and protects personal assets.