Self Employed Taxi Driver’s income is reduced due to Covid, struggling to pay his debts
A client recently contacted Advice NI’s Money & Debt helpline. In this case he was a self-employed taxi driver. Due to Covid restriction he could not work for several months and his income had been greatly reduced.
The full picture
When this client contacted Advice NI he had returned to work but on at a 30% capacity due to a lack of customers because of the pandemic. The client had debts of just over £20,000 in overdrafts, credit and store cards. He had struggled with debt repayments, but availed of payment holidays with his creditors. However, payment holidays came to an end, and his monthly income had not yet returned to what it was before Covid.
The client did not know when his income would increase to what it had been before Covid or if it ever would. He needed advice on his options to repay his debts.
How We Helped
Advice NI’s Business Debt adviser completed an up-to-date Financial Statement and the client’s disposable income totalled £161 per month. Following an in-depth discussion with our Business Debt adviser, the client decided he would like to explore entering into an Individual Voluntary Arrangement (IVA).
The client was directed to a list of Insolvency Practitioners (IPs) he could contact in his own time once he felt he was ready. The Business Debt adviser reiterated the importance of checking any Insolvency Practitioner he contacted was regulated. The adviser also explained if the company offered Debt Management Plans (DMPs), this client might also consider looking at reduced payments through a DMP in the interim to see if anything improved before proposing an IVA.
Advice NI's Business Debt Service can provide free advice and information to sole traders, partnerships, and limited companies.