General IVA/Bankruptcy Queries/Worries...

beeteecee

JCS1 said:

Can we ask why you did an AVA? Do you own a house? How much were your debts?

Because I'm a fool I've learned since I did it in 2022. I wanted to have my debts in one place and be able to clear them, as I had a significant tax debt but unfortunately, as HMRC did not provide me with my new tax details until October 2023 and the difficulties of the last few years with the cost of living etc, I am in the same position again. I do not own a house, debt is over 50k. 

JCS1

So you could stop paying the IVA and start saving the payments as an emergency fund.

Let me tag @sourcrates and also @fatbelly for their views.

beeteecee

JCS1 said:

So you could stop paying the IVA and start saving the payments as an emergency fund.

Let me tag @sourcrates and also @fatbelly for their views.

Yes, I think so, I imagine as soon as I stop paying everything will fall down around me and it's hard to know what the best thing to do is. I guess prolonging things will probably get me into even more trouble too? Thanks for your feedback, it's really appreciated. 

fatbelly

You don't need to be wasting time researching insolvency practitioners. The relevant one is the one you've already got.

Find out how much you owe (or they say you owe) HMRC. Ask your IP to add that into your IVA.

It'll either work or it won't. If it won't there is no point continuing with this IVA.

Things will not 'all fall down around you'. It will take 6-12 months to fail the IVA.

If one of the creditors, or your IP, or HMRC, issue a statutory demand and follow it through, that saves you £680 in bankruptcy fees.

In the meantime save the £380 per month. Review this time next year

beeteecee

fatbelly said:

You don't need to be wasting time researching insolvency practitioners. The relevant one is the one you've already got.

Find out how much you owe (or they say you owe) HMRC. Ask your IP to add that into your IVA.

It'll either work or it won't. If it won't there is no point continuing with this IVA.

Things will not 'all fall down around you'. It will take 6-12 months to fail the IVA.

If one of the creditors, or your IP, or HMRC, issue a statutory demand and follow it through, that saves you £680 in bankruptcy fees.

In the meantime save the £380 per month. Review this time next year

Thanks so much for your help, I keep falling down online rabbit holes and panicking and not knowing what to do.

The latest HMRC bill is for 23/24 so it is after of the IVA that began in 2022 - is this something that would influenceit?

If I save the £380...will it not be given straight to the creditors as it's theirs really?

Apologies for my ignorance, I can't work out what's best. When I told the IVA people I could not pay my 23/24 tax payment they said

"When notified, Hmrc will advise of a breach for post Iva debt and request a meeting of creditors.

At the meeting creditors will be informed of the situation and submit votes to terminate the Iva, they may avoid bankruptcy and request the Iva is terminated, you will deal with your creditors directly.

Would you like me to stop the Iva payment whilst this is ongoing?

Hmrc can be a little slow with contact, and the process to hold a meeting does take time for review and giving creditors 28 days notice."

I didn't know what to do so I said I'd carry on with payments, I'm so worried about the bankruptcy process but ignoring it is not going to achieve anything. 

fatbelly

Ok, so they know about this and are trying to bring it in.

Stop the Iva payments and recommence them if the iva survives.

That's all you need to think about at the moment

beeteecee

fatbelly said:

Ok, so they know about this and are trying to bring it in.

Stop the Iva payments and recommence them if the iva survives.

That's all you need to think about at the moment

Yeah, I told them about my latest HMRC bill and she basically said in response that their action begins when the HMRC inform them which they haven't, although I have.

So I should,

1) Ask if the new HMRC debt can be added to the IVA?
2) Stop payments if not?

Sorry I just want to do the rightest thing in a rubbish situation which I didn't expect I'd be in again. Thanks so much for your insights. 

Grumpelstiltskin

Why are you worried about bankruptcy when you accepted an IVA - just another form of insolvency?

Do as Fatbelly says, nothing terrible is going to happen just make sure you save as much as you can when you have stopped paying your IVA. OK the IVA company might try and frighten you but don't speak to them they can't force you to do anything.

beeteecee

Grumpelstiltskin said:

Why are you worried about bankruptcy when you accepted an IVA - just another form of insolvency?

Do as Fatbelly says, nothing terrible is going to happen just make sure you save as much as you can when you have stopped paying your IVA. OK the IVA company might try and frighten you but don't speak to them they can't force you to do anything.

It just seems a scary and intrusive process, I suppose I was tricked by the IVA firm as they made it all very straightforward and there was no asking for years' worth of bank statements etc. I'm probably being ridiculous.

What am I saving for? Sorry to sound so ridiculous, if I save anything - won't somebody take it? 

Grumpelstiltskin

You are saving for anything that crops up, cash is still king.
Who  is going to know what and where you are saving?