General IVA/Bankruptcy Queries/Worries...

beeteecee

sourcrates said:

I have merged both your threads here to avoid duplicate advice.

Thanks I'm sorry for multiple threads! 

beeteecee

sourcrates said:

beeteecee said:

So...IVA still has not failed. I continue to pay them £500+ a month but HMRC are chasing later years tax bills, as they rightly should, and I'm no closer to paying them. Today's letter says they may visit in person to discuss and this is just terrifying. I don't know if I can handle a phone call either but writing to them seems to get nowhere. Head in sand time is truly coming back to bite. 

HMRC are a Government body, so are not looking to trip you up, just to come to an amicable arrangement you can both live with, under normal circumstances I would say avoid personal callers as they usually have some kind of agenda to play out, but HMRC are different in my opinion, as its the Government you are essentially dealing with, not some 3rd party debt collector.

Face to face discussions may be what you need here.

On a previous note, have you approached your IP about putting that debt into your IVA yet?

If all else fails would bankruptcy be so bad? especially if HMRC do it for you.

Thanks - I'm not sure I can cope with face to face but maybe it's the answer. I've tried to deal with their debt collectors but they never respond and HMRC also haven't responded to my recent letters 

I have told my IP about the post IVA HMRC debt but at the time I was attempting to arrange a payment plan via the HMRC for the new debt but didn't get this in place. I need to ask them about putting the debt into the IVA. They did not suggest it and I didn't bring it up either. 

Bankruptcy is only a worry due to potentially being taken to court in person & I guess because of the loaded nature of the term...I am worried about how I'll manage the household income/requirements etc and also BRO/BRUs but this mess simply cannot continue. Thank you for your reply, really appreciated 

ManyWays

Bankruptcy is only a worry due to potentially being taken to court in person
You don't have to attend if you don't want to contest it. Sometimes "Go ahead, make my day" is what you should be thinking when HMRC threatens bankruptcy

beeteecee

ManyWays said:

Bankruptcy is only a worry due to potentially being taken to court in person
You don't have to attend if you don't want to contest it. Sometimes "Go ahead, make my day" is what you should be thinking when HMRC threatens bankruptcy

I'd just love it all to be sorted. I guess the way to do that is to fail the IVA and take what comes next 😬

beeteecee

So...I spoke to the nicest of the advisors at my IVA company about the possibility of adding the new HMRC arrears at my IVA company and they said

"In my experience, it is highly unlikely that HMRC would agree to add any post IVA liabilities to the IVA and would almost certainly ask for the IVA to be failed and for us to start bankruptcy proceedings. They are such a large creditor that their vote would carry so I cannot see this as being a realistic option. However, I have copied supervision into the reply as they would have more experience of HMRC post approval of the IVA.

If you have failed with the time to pay agreements, HMRC will also likely look for bankruptcy so unless you can clear their arrears it would be difficult to see how to keep the IVA on track. If you were in a position to clear the arrears, we could try to possibly reduce your monthly payments or if there was any possibility of raising a lump sum, we could even try to settle the IVA with a full and final offer. Not sure if this is an option but if it was, there is a possibility HMRC could agree to let the IVA close. I would think though that they would want their arrears cleared too so this just may not be viable.

Sorry if this is not much help but perhaps supervision may be able to advise further."

I guess the next step is...stop paying the IVA? I did expect this would be the case but not paying anyone anything feels really wrong.

fatbelly

Yes, stop paying the IVA, as previously suggested

I notice the IP didn't say what they would do if HMRC blocked the additional debt and asked the IP to petition for your bankruptcy. My guess is 'nothing'. I did talk to an IP about this once and they said that only a handful were made bankrupt each year.

So if HMRC want to do that, I suspect they will have to initiate it

beeteecee

fatbelly said:

Yes, stop paying the IVA, as previously suggested

I notice the IP didn't say what they would do if HMRC blocked the additional debt and asked the IP to petition for your bankruptcy. My guess is 'nothing'. I did talk to an IP about this once and they said that only a handful were made bankrupt each year.

So if HMRC want to do that, I suspect they will have to initiate it

Yeah I'm awaiting further info from the supervision team. I'll certainly be part of the handful...main worries now are what will happen when but as you've reminded me plenty of times, it all takes time...

fatbelly

It's more expensive to make someone bankrupt than to petition yourself.

Hence I can't see your IP wanting to do it but eventually I think HMRC will. In the meantime get on with your life and use the £380 per month to get any maintenance issues fixed, freezer filled, etc. Maybe even take a holiday in the Spring

beeteecee

fatbelly said:

It's more expensive to make someone bankrupt than to petition yourself.

Hence I can't see your IP wanting to do it but eventually I think HMRC will. In the meantime get on with your life and use the £380 per month to get any maintenance issues fixed, freezer filled, etc. Maybe even take a holiday in the Spring

Thank you once again for the level-headedness.

The scary emails when that first payment fails are stressful but it's not like it'll all be happening in January and there are a lot of boxes to tick yet...I'll just try and be as ready as possible, however you do that. Household of seven means we can't even go down the road for a day trip to be honest. Thanks again  

beeteecee

IVA folks still continuing with their suggestions:

"Unfortunately and post IVA debts cannot be included in the IVA.

 Please can you advise how much is owing Post VA to the HMRC and I will review with the Supervisor if a 6 month Payment Break could be applied to assist you with repayments to the HMRC."

I mean...is this something I even want to consider? Do I not end up in the same situation again in 6 months? If the HMRC will even accept any offer I make?