General IVA/Bankruptcy Queries/Worries...

beeteecee

ManyWays said:

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. 

Yeah...I'm torn. I think I'm going to write to the HMRC with an offer of payment...equalling the IVA amount. My partner is actively looking for work & lining up interviews now our youngest child is finally in full-time education so hopefully when 6 months are up, IF the HMRC accept the payment offer and he finds work I should be able to maintain the amount agreed, if not increase it and manage the IVA payment too. If they don't accept the payment offer...I guess we're back to the fail situation. 

I feel a genuine need to try and pay as much of my debt as possible if I possibly can - I'm not on a low income but with the size of our household and only me working at present, everything is swallowed up before I have a chance to get on top of things. 

There are a lot of IFs...I have completed the Business Debtline Income/Expenditure Forum/SOA & written the HMRC letter...now I just need to get it sent as soon as I can find somewhere to print them both...my printer is helpfully broken.

I'm not sure if this is the best thing to do but saying nothing or misleading the IVA company by asking for the payment break but not attempting to arrange any payment plan feels wrong. I wish there was one simple answer. Thank you for reply  

beeteecee

Just received a new direct debit instruction from my IP putting off the next payment until May so guessing they've gone ahead with the break prior to me confirming anything 🙃 

RAS

Do you have a local library? Many allow you to print from their machines. Ring and check if they need you to take the documents as a file on a stick, or if you can send it to yourself attached to an email?

beeteecee

RAS said:

Do you have a local library? Many allow you to print from their machines. Ring and check if they need you to take the documents as a file on a stick, or if you can send it to yourself attached to an email?

Thanks I'm a bit anxious about this info on a public computer. Found a printer for £10 second hand so picking that up soon 🤞

RAS

Glad you found a printer.

Just so you know, libraries are also anxious about your privacy. At the moment, my service allows you to send the document to print. It then closes the screen apart from a tab with a code number. That's usable any time until midnight.

You can only print the document out if you stand in front of the printer and type in the code. It's then printed immediately so you can pick it up. It comes out face down.

The thing is to avoid labelling your file "bankruptcy 2 if you might need help and you are embarrassed, though I don't think anyone would think about BR2. 

Usually you can print straight from a memory stick but again you need to be standing over the little instruction screen for it to work, but that's not working atm. 

Do check if they use a coin slot though.

beeteecee

RAS said:

Glad you found a printer.

Just so you know, libraries are also anxious about your privacy. At the moment, my service allows you to send the document to print. It then closes the screen apart from a tab with a code number. That's usable any time until midnight.

You can only print the document out if you stand in front of the printer and type in the code. It's then printed immediately so you can pick it up. It comes out face down.

The thing is to avoid labelling your file "bankruptcy 2 if you might need help and you are embarrassed, though I don't think anyone would think about BR2. 

Usually you can print straight from a memory stick but again you need to be standing over the little instruction screen for it to work, but that's not working atm. 

Do check if they use a coin slot though.

This would have made more sense! With the cost of ink on top of the printer it obviously wasn't as affordable as expected but I should at least be able to send the letter off tomorrow and see where we stand.

I'm probably being paranoid about everything hard not to be!

Thank you again! 

beeteecee

Made it through the pressure of December in one piece but, as the hour suggests, the worries re all of this are still pretty crushing.

Currently have the payment holiday from IP until May.
Have written to HMRC offering them X amount per month with my budget from the business debtline website. 
Stressed every time I spend money on anything in case I get in trouble...ie relative lent me £20 and I paid it back when I got paid...does this look bad when they eventually look through my bank statements?

The big one that's plaguing me at the moment is will my circumstances be viewed more negatively if I await being made bankrupt as opposed to doing it myself? I'm prepared to wait but worry, possibly irrationally, that I'll be considered/treated "worse" if I do? 

Sorry if this all sounds mad...sleepless nights and all that! 

ManyWays

This is now an extremely long thread and it may be easy for someone skimming it to miss something important. Can you summarise your situation, what you see as the possible routes forward, and why you think its better to let the IVA drag on and not just fail now and go bankrupt. 

beeteecee

ManyWays said:

This is now an extremely long thread and it may be easy for someone skimming it to miss something important. Can you summarise your situation, what you see as the possible routes forward, and why you think its better to let the IVA drag on and not just fail now and go bankrupt. 

Thanks for replying. 

I don't really have any clear thoughts about anything & appreciate the chance to think about this. 

I'm in no doubt the IVA will fail due to the post-IVA debt. 

I'm also sure bankruptcy is the only solution at this point...it's the waiting that becomes stressful at 1am sometimes!

The only routes are I go bankrupt or wait to be made bankrupt...I think? 

ManyWays

How large are the debts in your IVA and how much do you owe HMRC?

Assuming you are right that bankruptcy is inevitable then tell your IVA firm you do not want an extension, as this just prolongs anything. Tell them you want the IVA failed so you can go bankrupt and make a complaint if they wont do this.

Normally it is better to go bankrupt yourself as it's just quicker, you can get the money for this by not paying HMRC anything. The only reason not to make yourself bankrupt is if you are over 55 and could potentially access money from a defined contribution pension, that can stop your bankruptcy being approved if you apply yourself but it wouldn't stop HMRC making you bankrupt.

If you want HMRC to make you bankrupt, dont pay them anything. 

An IVA hold and paying HMRC money are just prolonging your problems when a clean start as soon as possible is normally better. But I may have missed something, do say if there is some other issue.