Firm to help with non-standard IVA

toomuch2

longtermplanner wrote: »

It sounds as though it is essential to get your tax position sorted out.

Yes!!!

I will ring Stepchange tomorrow, or possibly the National Debtline to get further advice.

Thanks again

UpToMyNeckInIt

Hi toomuch2,

I think you have reached the point where it is worth giving an IP or 3 a call.

Anecdotally, I have heard that HMRC can be one of the more difficult creditors - certainly as far as IVA's as concerned, sometimes imposing special conditions suchas an extra year (only if they have a controlling portion of your total debt of course).

Personally, I excluded my (relatively small) HMRC debt from the IVA - not least because I wanted to protect my 'Company' Credit Rating. If you contact their Payment Support Service on: 0300 200 3835, and explain your situation, they may let you pay any amounts owed in installments. Furthermore, they only charge you 3% interest per year (and they don't charge interest on their interest).

I have used this service a couple of times, and found the staff to be firm, but ultimately helpful.

As for what debt managment solution you choose, I can only echo what everyone else has said: Do your research. Have a look at the 'Debt Camel' website (operated by a CAB advisor) here:

http://debtcamel.co.uk/debt-options/

Provides a really good comparison of all your options IMO.

A DMP may well be a good way forward - (only as a stop-gap, because it is unrealistic to suggest that ALL your creditors will freeze all interest for 6-8 years). The main issues to bear in mind with DMP's is that your credit file remains damaged 6 years AFTER your FINAL payment (ie for 13 or so years in your best-case scenarion). With the IVA/BR on the other hand, your credit file is restored 6 Years after the START of the plan (ie, in 6 Years time). Remember as well, that a DMP is an 'informal' arrangement, which means that creditors can (and do), 'change their minds', moving goal posts at their whim.

£90K is a huge chunk of debt. If you have little in the way of assets to protect, consider BR. If that will hinder your job prospects etc, (or if the stingy living allowances put you off), seriously look at the IVA.

Being self-employed with a variable income is an inconvenience, but not a deal-killer (believe me, I know). If you have known, likely 'seasonal' peaks & troughs in income, a decent IP (such as the one you are considering), will allow you to pay more in good months, less in not so good months - as I have seen her post as such on another IVA forum. I'm sure she is no alone in this practice, but again, you are more likely to tailor a bespoke arrangement such as this with a smaller firm, rather than an 'IVA Factory'.

Good luck.

toomuch2

Quick Update

Firstly thank you to everybody who has offered advice in this thread it has been incredibly useful. Most of all it made me start to really research my options, not just "asking around". I guess I had my lightbulb moment! . My wife has been very supportive, but is clearly very very upset with the whole situation, and I think like me very scared.

The forum as a whole has been wonderful - although I have become slightly obsessive about it! I have learnt so much -and checking one thread last night prompted me to go to insurance comparison sites, having found out that bankrupts pay more for contents insurance. I was shocked to see that many firms change c£50 per year - I am paying that a month. There maybe a reason, I am on the edge of a flood area - but the difference is staggering. The fact that I didn't know is as blight on me!

I have been seeking further advice and won't bore you with each conversation, I will come back with a single update. The one place I want to talk to that I can't get through to is the Business Debt Line. Time of year I guess.

Here is the single fact that makes me feel so ashamed and stupid: Three phones calls sometime in 2013 would have prevented all of this.

One to set up a business
One to an accountant
One to a bank to open a business account.

Deep regret doesn't even come close to how I feel right now.

I haven't decided the path I will go down yet, I am assessing all my options - including BR alongside some of the others here. It will be a life changing decision I need to make sure I pick the right one.

It is my birthday next week - I am in my fifties now. I might have just grown up.

Find_The_Real

Thanks for the update toomuch and feel free to post any time you feel you want to, we have all been through your journey and not knowing what is the best option to take can sometimes be the hardest part of it all. I am pleased you are researching your options fully before making such a big decision as you have found what ever path you choose can have many different outcomes.

I admit looking at bankruptcy was scary but it certainly did not discount it due to my level of debt, I was just very fortunate in my circumstances to be able to go in with a F&F IVA otherwise I probably would have opted for it, so do take as much free advice as you can to make sure you fully understand what each option will mean for you in the longer term.

We all have regrets but try not to dwell on them too much, you can't change the past but having had your lightbulb moment you are now able to change to future.

Happy birthday for next week and well done on the growing up bit, alas it comes to us all at some point! Good luck with your researching and your eventual choice.

toomuch2

Another quick update

A slight silver lining. I spoke to an accountant (who gave me some advice for free, for which I am truly grateful). After the numbers conversation the advice given was focus. Focus on the tax situation, then if I need to look at insolvency - focus on that, if not he felt if my stress levels went any higher I would explode. He was quite impressed at the knowledge I had gained about BR and IVSa - I explained it was all down to the kind people on this board.

I have spoken to HMRC. Although I felt sick before the call they were really great. It looks as if I will be able to reduce my payments on account. They are also open to at least talking about some sort of payment plan. It still feels unlikely but at least they are talking. Nevertheless my liability has reduced by around 20K. Still enormous I know.

I have reduced my household insurance. I had the premier edition, in fact I am not sure I could find a more expensive policy.

We have taken substantial steps to bring the weekly shop into line. We had already reduced it, but we are now in turbo mode.

Looking at energy providers/internet provider etc

I have had the opportunity to extend my current contract by two months. It would mean that I would need to walk away from the possibility of another contract that paid less but would have been for a little longer. But that contract is not signed and they seem a bit flakey, so I might just go with the bird in the hand...

None of this will in-of-itself take care of the debt, but it is helping me at least *feel* I am getting back some control (right now that is important), and if I can successfully get my outgoings down I stand a better chance of getting a deal with the IR.

I have another call with the IR next week to agree my final tax position, and talk about what I can pay, - when and if.

The path still seems inevitable, but a little less so.

Thanks again, still reading all of your other posts with interest.

milliemonster

Hi, just caught up on your thread, not sure if you have spoken to any of the IP's yet, but I am with Melanie Giles who I am deciphering is one you have on your list, I have been with her for the last 3 years and took 6 months before that to make up my mind, it was the best decision I ever made and the best company I chose, I have no regrets at all.

All I can say is that a decent ip will support you to go through all your options the pros and cons of each solution, Mel's team are not ones to push you into an iva if it's not right for you, even now 3 years down the line, I can email Mel herself any time night or day, any day of the week, and get a reply, stepchange advised me to do a dmp, I would have been paying it off for the next 29 years if I had taken their advice.

toomuch2

Hi Milliemonster

Thank you for your comments. Your are correct in your assumption that Melanie Giles is top of my list, having done some of my own research and followed UTMNII less-than-secret paper trail!

It is really good that you are having a positive experience with her, having read some posts on another forum it seems that quite a few IPs treat their 'clients' with a huge amount of disrespect. They earn a decent fee for their services. In fact the way some people are treated is putting off the IVA route - it seems too hit and miss. Having said that Melanie also posts a lot on the other forum with advice and help for all, not just her clients.

As you may have gathered I am carefully weighing up my options, the advice I have had on this thread has been brilliant. I am now seriously considering BR as an insolvency route as a result of comments here - and I wasn't at the beginning. An IVA is a long time under restrictive guidance (but so is the three years under BR!). When I look back five years my life was quite different,so heaven knows what the next five will bring.

As I have no house or any other big ticket items BR might be the best route for me. I am still trying to work out in terms of the insolvency if there is an advantage for me to try the IVA route. I think the big advantage of the IVA route is that I am more likely to get a mortgage with an IVA "credit rating tag" rather than a BR - which makes it very difficult if not impossible to get a mortgage.

What I have learnt from this forum is that my financial behaviour has to change. Previously I looked at what I can afford based on monthly outgoings. That is a false sense of security. When I actually sat down and worked out my debt I was shocked to see it in black and white.

UpToMyNeckInIt

BR is worthy of consideration - providing you are not in a profession which does not allow it. - It would totally stuff you up in terms of not allowing you to set up your own company.

Saying that, you might still be able to work under an 'umbrella arrangement' though as an 'employee', rather than as a 'director'. Or you could be able to set up your own company, but you would need to get someone to act 'silently' as director/company secretary - speak with your accountant. Usually costs you a little more, but still works out better than being a 'sole trader'.

Might be worth airing your concerns as well on the main 'Bankruptcy and Living with It' board, because to my mind the damage to your credit rating seems to be the same with all forms of 'insolvency'. I do understand though that, whilst there shouldn't be, there is clearly a 'stigma' with BR, more so than there seems to be with IVA's.

Also I am led to believe that, as difficult as getting things like car, home/contents insurance can be in an IVA, it can be even more so if going through BR.

Worth a chat with your local CAB if going BR is your preferred option as well.

Glad you have found all this stuff helpful, and I hope you continue with your careful decision making to choose the best option for you.

toomuch2

A final note here

I had a very long conversation with the BDL (my boss was out today!). Much of the conversation was around IVA vs BR. In the circumstances I am in with no assets and not in the type of job that will exclude bankrupts, the conclusion was that BR is probably the best option. If I had already had an established business then that might be be a decisive factor, but variable income and all that.

He was also very realistic about HMRC's likelihood to accept some sort of longer term payment plan - those variable payments again.

He did say one thing I thought odd, he mentioned that the judge might not grant bankruptcy if s/he thought I could do an IVA and provide creditors with a greater return. Never heard that one mentioned before.

I need to talk to the HMRC again about a couple of things then decide.

I need to start preparing the family, not quite sure how to deal with that. They know something is out of kilter.

The reality has been sinking in over the last few weeks, feel really quite down at the moment. I am sure you all know that feeling.

Thank all again who have helped me on this thread. I will take my questions to the main BR board.

Find_The_Real

I just wanted to wish you the best of luck on your chosen path when you decide which option to take.. I have never heard of bankruptcy being refused in favour of an IVA, especially in the case where there are no assets but I am sure the person at BDL was covering any possibility. If your income remains variable then you may not earn enough to be subject to an IPA as this only comes into force if you have a surplus income of £20 per month after household expenses are deducted.

My best advice for dealing with the family from my experience is to be honest about it, they know something is going on and the not knowing is probably anything worse than you can imagine. I was very honest with my family and friends and I was overwhelmed with how supportive they all were.

It's natural to feel down, I have certainly been though it as I am sure many of us here have but hopefully some of the stories on here you may have read show it is not the end of the world and you can survive life after BR/IVA. The BR board is also very supportive and should be able to answer any questions you have and where to get further help and advice.

Wishing you all the best.