Is an IVA right? £28k debt, self employed and PAYE income

marklar1980

Hi all, gutted to be having to ask but need a way out of the worry! 

Here's the important points:

Looking to possibly do an IVA in my name only - debts are all mine.

Assets
Owned home, mortgage in wife's name but clear beneficial interest. Approx £50k equity each.
No other significant assets.

Income
Wife - PT employed and self employed (low income from self employment)
Myself - employed on zero hours contract and self employed (60% income PAYE and 40% from self employment)

Income and expenditure
APPROX £150 pm remaining for creditors.

Debt level
£28,491 (of which £7k HMRC from self assessment)

Income from self employment is small, but expected to increase. Is it feasible to move self-employed income to Ltd company so any profits can be retained and protect the ongoing trading ability of the business/cashflow, rather than paid as wage/dividend?

In short, I don't know what's best. Just that I'd like to deal with it and have a solution in place.

The main reason I'm in this situation is a downturn in business, but we are on track for things to improve now, I hope.

Thanks so much 🙏🏻
Mark

marklar1980

Anyone in here able to advise on an IVA given these circumstances? 

Happy to set up with someone who can best help us navigate this. 

Grumpelstiltskin

Have you spoken to Business Debt Line?

Business debt advice | Free debt help | Business Debtline | Business Debtline

£28.000 is a relatively low amount to think about an IVA.

I hope you are not falling for the misleading adverts on social media.

ADD If Business Debt Line can't help you start with this thread on the Debt Free Wannabe board.

In Debt and Wannabe Debt Free? First Steps! — MoneySavingExpert Forum

marklar1980

I appreciate the reply Grumpelstiltskin!

I'm not drawn by the ads so much, and my main concern is the HMRC debt - I've really messed up on this and need a way to get it resolved before it becomes a nightmare.

Really worried about it right now tbh.

The prospect of getting out of the situation via a DMP would be ok without the HMRC debt.

Thanks again and to anyone else who can give insight.

Grumpelstiltskin

Go over to the DFW board as I suggested and post your SOA .

Personally I would suggest paying HMRC and defaulting on the rest of the unsecured debts. As you realize HMRC won't go away.

marklar1980

Ok thanks so much, I will post now. Feel relieved at just the thought of having a solution! Already defaulted on other debts so ready to go into a DMP.

Grumpelstiltskin

You will get the best suggestions over there.