Insolvency Practitioners for Bankruptcy - Worth the call?

beeteecee

I'm considering bankruptcy due to not being able to find the £ needed for my first income tax payment since I entered an IVA in 2022 due to endless ongoing issues with HMRC. If I don't make myself bankrupt, it's inevitable they will do so soon, I think...

Hours of researching and poring online have led me to lots of insolvency practitioners offering support/guidance/help - but...is this just a ploy? Obviously I have an IP as I'm in an IVA but I've emailed some companies for advice on bankruptcy and they've tried to arrange phone calls etc...I'm guessing they probably charge to file the paperwork for you or help you with it or something?

I cannot deal with phone calls at the best of times, let alone on subjects like this, so, am I just wasting my time? 

Thanks and apologies for all the paranoid posts, I'm struggling to sleep or focus on anything at the moment with this hanging over me. 

luvchocolate

Generally we would say never pay for advice..there are debt free charities there for you. 
Application for BR is online and easy to do. 
HMRC are one of the few people who could make you BR but that would save you from paying for it 

beeteecee

luvchocolate said:

Generally we would say never pay for advice..there are debt free charities there for you. 
Application for BR is online and easy to do. 
HMRC are one of the few people who could make you BR but that would save you from paying for it 

Thanks I worry about the length of BRU/BRO which would come if I avoid the inevitable. 
I have spoken to businessdebtline before as none of the other charities will help and I didn't find their support too great.
I did think the keenness of the insolvency firms was a sign of something untoward.
I'm a bit daunted by the process and the length of the form and getting into yet more trouble if I get anything else wrong. Thanks for replying . 

ManyWays

Have you spoken to your IVA firm, because it is in their best interest to help you get this resolved. 

beeteecee

ManyWays said:

Have you spoken to your IVA firm, because it is in their best interest to help you get this resolved. 

Hi - yes I've informed them and they've explained the process but said until the HMRC inform them things can continue as they are, which seems counterintuitive as I'm giving them £350 a month for something which will definitely fail. They offered me a payment break etc but this won't be enough to pay the tax bill so it seems there's no real solution at the moment. 

JCS1

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

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.