General IVA/Bankruptcy Queries/Worries...

ManyWays

it's hard to accept the best action is basically no action
Deciding to stop paying your IVA so it fails and going for bankruptcy instead isnt no action, it is taking control of your situation and getting a clean start. 

RAS

Second ManyWays. 

Please put in place a few essentials. Stop paying the IVA, get the car maintained and new tyres, buy a new modestly priced cooker in the sales if yours is failing or falling apart . 

Given that BR allowances are more generous than IVA, start by living on the IVA allowances plus say 15%.

And be kind to yourself.

beeteecee

ManyWays said:

it's hard to accept the best action is basically no action
Deciding to stop paying your IVA so it fails and going for bankruptcy instead isnt no action, it is taking control of your situation and getting a clean start. 

Thank you, you're right. Hopefully there'll be some kind of timescale set out once the IVA folks see what's happened. Thanks again for being so understanding:)

beeteecee

RAS said:

Second ManyWays. 

Please put in place a few essentials. Stop paying the IVA, get the car maintained and new tyres, buy a new modestly priced cooker in the sales if yours is failing or falling apart . 

Given that BR allowances are more generous than IVA, start by living on the IVA allowances plus say 15%.

And be kind to yourself.

Thank you so much for replying and being so kind. 

I will do what I can as much as possible. I am going to try and save some kind of emergency fund under the mattress - with so many people in this household there's always some unexpected expense!

Pretty sure I'll never be able to achieve your last point but I'll try 🙃! 

beeteecee

I don't think I'm ever going to stop adding to this thread am I? Obviously I spoke to my IVA team last week about adding debts in, that was a big no, and they mentioned the 6-month thing and I said I guess...

Today they've said:

"I can confirm that we can grant you a 6 month payment break and add the 6 months onto the end of your IVA.

Can you make contact with the HMRC and see if they will accept any offer of repayment and we can take it from there."

Now obviously as we've discussed here, 6 months isn't going to get me clear of the HMRC debt but I'm a bit stuck on knowing what I'm supposed to do in terms of communication...do I reply to the IVA company saying nevermind I'm going to cancel your payments or what? I know the second I miss a payment they'll start sending 500 emails and demanding stuff and I don't want to appear uncooperative? Or does it not matter? 

Apologies for the repetition and endless questions...

fatbelly

Take six months to get your ducks in a row. Which is I think what RAS was saying

Nothing will probably happen in that time as I think it will be at least that before HMRC petition for your bankruptcy

beeteecee

fatbelly said:

Take six months to get your ducks in a row. Which is I think what RAS was saying

Nothing will probably happen in that time as I think it will be at least that before HMRC petition for your bankruptcy

So do I tell the IVA people I'm talking to the HMRC or...I'm guessing they'll press "go" on this payment break once I confirm I've got a payment plan in place? Which I haven't...

Sorry again! 

fatbelly

They are ready to press go on the payment break now. Just say 'yes, please give me a payment break' and stop paying them.

beeteecee

fatbelly said:

They are ready to press go on the payment break now. Just say 'yes, please give me a payment break' and stop paying them.

OK - I'm just not sure if she expects me to confirm this HMRC arrangement before accepting and then being said to have been dishonest or something...overthinking? Probably!

ManyWays

Step back and decide what you want to happen.

Will this 6 month payment break let you clear the HMRC debt and then restart the IVA? 

If YES, that is probably a good idea.HMRC are likely to be very happy if you can clear the debt in 6 months.

If NOT REALLY, as you cant clear the HMRC debt in that time so the IVA could only resume at a lower rate, then how much lower? You need to check now that this is what you expect and get your IVA firm to agree in writing that is an OK route forward.

If NO, then you probably do not want it and it is better to FAIL the IVA as soon as possible and then go bankrupt.