General IVA/Bankruptcy Queries/Worries...

fatbelly

Well they are thinking that you might be able to pay this new debt in 6 months, then carry on with your iva.

Is that realistic?

beeteecee

fatbelly said:

Well they are thinking that you might be able to pay this new debt in 6 months, then carry on with your iva.

Is that realistic?

Vaguely...I could potentially make a big dent in the old debt but obviously there are new amounts becoming due in January '25/July '25 but these are smaller than what's outstanding so could be managed...possibly. 

fatbelly

It seems to me that the longer you struggle on trying to do the right thing, the more difficult it is to decide what to do.

You are now nearly half way through the IVA, they have given you a way of dealing with HMRC that might or might not work, and you know in bankruptcy you pay your surplus income for 36 months.

in May it was clear that you should stop paying and let things happen. I'm inclined to say that's still best. See what others think

beeteecee

Really appreciated @fatbelly - I do struggle with knowing what to do and wish there was just a single answer as my situation worsens every time I waste another day, week or month dithering.

I do feel the 6 months is not really going to be enough to 'fix' the situation but am considering asking the IP  to work with me to set up an instalment plan and adjust the IVA payment...as per your suggestion a couple of days ago - not sure how this works in reality but maybe it's a possibility.

Doing the 'right thing' is a preoccupation I need to get over and just make a decision. 

sourcrates

Looking back through your thread I can see no real reason to keep delaying the inevitable like you have been doing up to this point.

I would say I agree with fatbelly, its clear what is going to happen, and pretty soon all this will be taken out of your hands, so you should now prepare for HMRC to act, stop paying the IVA, get your house in order, and honestly, with no assets to realise, this is likely going to be a case of a 36 month BRU at most going forward.

With all the stress and "not knowing" currently affecting your thought process, I`d put all thought of it out of my mind and let HMRC roll the dice on this, just let them get on with it and cooperate as best you can when they do.

beeteecee

sourcrates said:

Looking back through your thread I can see no real reason to keep delaying the inevitable like you have been doing up to this point.

I would say I agree with fatbelly, its clear what is going to happen, and pretty soon all this will be taken out of your hands, so you should now prepare for HMRC to act, stop paying the IVA, get your house in order, and honestly, with no assets to realise, this is likely going to be a case of a 36 month BRU at most going forward.

With all the stress and "not knowing" currently affecting your thought process, I`d put all thought of it out of my mind and let HMRC roll the dice on this, just let them get on with it and cooperate as best you can when they do.

Thank you so much for your reply - it makes absolute sense really.

I've got fears of a BRU for the next decade of my life or something but if that's what I deserve then I'll obviously accept it.

I'm definitely preoccupied and scared of the not knowing...how 'soon' is soon etc etc. 

I think because the HMRC letters are quite serious, saying they'll be coming round etc if I don't pay, I feel compelled to do something in a panic but then can't decide what that something is and the cycle continues. Constant letters and (very fair, of course, I do owe them) threats to visit etc are stressful...but it's all part of the process I guess.

Thanks again for replying. 

sourcrates

The thing is a representative of HMRC is going to be quintessentially professional in their approach to you.

Not like a doorstep collector for a debt collection company, there is nothing they can do to you personally, it will be a financial hit you take, not a physical one.

It really is only money, it may seem like a massive hurdle, but if they make you bankrupt, they are effectively taking away the pain of it all, yes monthly payments are inevitable, but only what is affordable to you.

The budget allowances in bankruptcy are surprisingly generous, and I doubt very much a BRU will last ten years, they are reserved for those who fail to cooperate with the OR, or have had some kind of fraudulent dealings discovered, if you cooperate, it will be the standard 3 years.

beeteecee

sourcrates said:

The thing is a representative of HMRC is going to be quintessentially professional in their approach to you.

Not like a doorstep collector for a debt collection company, there is nothing they can do to you personally, it will be a financial hit you take, not a physical one.

It really is only money, it may seem like a massive hurdle, but if they make you bankrupt, they are effectively taking away the pain of it all, yes monthly payments are inevitable, but only what is affordable to you.

The budget allowances in bankruptcy are surprisingly generous, and I doubt very much a BRU will last ten years, they are reserved for those who fail to cooperate with the OR, or have had some kind of fraudulent dealings discovered, if you cooperate, it will be the standard 3 years.

Thank you once again - you know how much I appreciate your responses.

I think I'm just hung up on the idea that it appears I'm ignoring them and that's the wrong thing to do but if they come here and I talk to them...I'm doing the right thing I guess & that's all I can do...I'll only be able to say I can't pay in the time you want me to...and they'll have to do what they can with that information, should they actually come out and see me, I'm guessing once the IVA defaults it may be a different situation and I'm simply awaiting the statutory demand. 

It's pretty clear I need some kind of fresh start before I end up having a heart attack, constantly wondering and worrying is no good for anyone. I hope I can keep things as normal as possible for the kids etc and they basically won't know any different...regardless, it has to happen and that will surely be quite soon. Thank you  

ManyWays

There are now a lot more long BROs/BRUs than there used to be, but the large majority seem to be fraudulent Bounce Back loans. You can see the length and reasons for recent ones on the Insolvency Service list https://www.insolvencydirect.bis.gov.uk/IESdatabase/viewbrobrusummary-new.asp
It is very easy for us to say dont worry, but you are now 6 months further on since May and, apart from 6 months stress, things dont seem to have changed much.

beeteecee

ManyWays said:

There are now a lot more long BROs/BRUs than there used to be, but the large majority seem to be fraudulent Bounce Back loans. You can see the length and reasons for recent ones on the Insolvency Service list https://www.insolvencydirect.bis.gov.uk/IESdatabase/viewbrobrusummary-new.asp
It is very easy for us to say dont worry, but you are now 6 months further on since May and, apart from 6 months stress, things dont seem to have changed much.

I check that link obsessively almost daily...not sure if it helps or makes me more stressed! I guess I'm looking for a similar situation but have yet to find one - I've never had thousands of spare pounds to give to relatives or assets to dishonestly transfer and obviously no large loans of any kind ever. Obviously not paying your tax debt is a big no no though and that's what this is. 

Yeah...I am getting nowhere fast and it's hard to accept the best action is basically no action... Thank you for your reply