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Background
The butcher is involved in a small
business with only 2 employees and cannot afford to pay his
debts.
His shop is traditional in style
and sells only fresh meat and no other products. Due to the
foot and mouth crisis, his sales have dropped.
The stock that he has purchased
has only a short shelf life and without a strong customer
base much of this is having to be discarded. He has reached
his credit limit with his major supplier and is having difficulty
buying further meat.
His friend, another butcher has
offered him PAYE employment in his shop, should he decide
to close the business.
Having read about proposing an
IVA at the section on personal insolvency, he has decided
that if he shuts his business and accepts the offer of full-time
PAYE employment he will have a regular income and be in a
position to put forward an IVA proposal offering monthly payments.
The IVA proposal was agreed with his
creditors and the butcher consequently avoided bankruptcy.
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