IVA Preparation

Chips_and_Gravy

Hi and so glad I found this forum ! Looks pretty much like I will be applying for an IVA pretty soon. I have done a lot of research and have engaged Step Change (plus a few others) and have chosen to go with SC should I press ahead. Although my wife and I have both separate bank accounts, we do have a joint account where all the bills come out of. There would be no overdraft on this account so I am thinking the best thing to do, prior to the IVA, is remove my wife from this account to avoid her being connected to me and my IVA for future searches etc... would this be advised ?

My wife currently has her salary paid into her own personal account and I have my salary paid into the joint account where all the bills come out of. Should I leave it like this, or should I look at opening another basic bank account in my name, to be used during my IVA ?
We have a joint mortgage, and the current 5yr fixed rate we have will be due for renewal approximately 3.5yrs into the IVA. I am assuming I won't be able to re-mortgage to another deal due to my ongoing IVA and as my wife will be unable to take the mortgage on herself, am I correct in thinking we would just default to a standard tracker rate until we are in a position to re-mortgage ?

My creditors are currently Barclaycard, MBNA CC and Tesco Loan which are all currently manageable however, we are waiting to see the outcome of a change in legislation that could mean I will end up with HMRC as the other creditor and if this is the case, then I will have to apply for an IVA and HMRC will be over 75% of the debt value. Has anyone had any experience with HMRC voting on IVA's ? The only thing I can say is if they forced the bankruptcy route, they would get at best, the same return as an IVA, so I am hoping this would go in my favour, anyone any experience please ? I am choosing IVA over bankruptcy due to being a home owner and I want to protect the family home from repossession if at all possible.

The other area I am unclear is, I know that I have to declare my wife's income which is fine, but I don't know how they make up the expenditure budget. I bring in 2 thirds of the income. I was under the impression it's an 'all in and all out pot' whereby all the income is added together, all the bills are added together and what is left is the potential IVA payment. Although I have read in other forums/posts that the expenditure will take into consideration the split in income, but how does that work ?

fatbelly

Your wife is linked through the mortgage and any other joint financial product so having separate bank accounts won't make much  difference to her but it may make things easier for you  to evidence your income as the IVA progresses.

Your mortgage will revert to the standard variable rate when the deal ends. You can ask then what is available from your lender.

If you bring in 2/3 of the income,  you take 2/3 of the expenses. That's how it works.

Now I do not have experience of HMRC and IVAs (your IP should. If not, choose a different IP). I am a debt adviser but I do  DROs because they suit my clients (not you!). So you do need to research this to check whether this is the best way of dealing with your tax debt. It may not be.

sourcrates

Some info here on how HMRC determine acceptance of IVA or not -

https://www.purnells.co.uk/News/Post/2016-03-24-Dealing_with_HMRC_when_proposing_an_IVA

Chips_and_Gravy

fatbelly said:

Your wife is linked through the mortgage and any other joint financial product so having separate bank accounts won't make much  difference to her but it may make things easier for you  to evidence your income as the IVA progresses.
Thanks, this was my thinking and would go ahead and remove the joint account just for ease.
Your mortgage will revert to the standard variable rate when the deal ends. You can ask then what is available from your lender.
Thanks, makes sense.
If you bring in 2/3 of the income,  you take 2/3 of the expenses. That's how it works.
Still probably being a bit thick here sorry :-) this would suggest that for arguments sake, our expenditure came out at £900, then based on the 2 thirds income split, I would only offer up £600 am I correct ?
Initial research and talks suggest they would propose I offer the whole £900. Now don't get me wrong, I would want the IVA to go through and would be willing to offer the whole £900 which is why I don't get the point in splitting the expenditure. I am guessing it comes down to what your liability is and whether or not the 2 thirds would be enough to get the creditors to vote yes ? I know I am over thinking this, but just like to have things straight in my head.
Now I do not have experience of HMRC and IVAs (your IP should. If not, choose a different IP). I am a debt adviser but I do  DROs because they suit my clients (not you!). So you do need to research this to check whether this is the best way of dealing with your tax debt. It may not be.
I have looked into the possibility of entering into a direct TTP agreement with HMRC and they would never entertain the amount of time I would require to pay it off.   

Chips_and_Gravy

Thanks @sourcrates as a newbie, it wouldn't allow me to reply direct, as it contained a link.
I have seen that link before and don't believe I fall into any of those reasons to warrant a refusal... Hopefully, but who knows when it comes to HMRC !!!