Unfair Modification to IVA?

UnfairIVA

fatbelly said:

TAC are one of the IVA pushers we see a lot of here. They typically want their 4-figure fees for filling in a couple of forms, not an extended negotiation with  HMRC

I can see that with your share of equity being 35k and the HMRC debt being 30k then they are playing hardball and may consider issuing a statutory demand to which you would suggest a voluntary charge.

A couple of thoughts

Would they consider a monthly instalment direct to them of whatever the iva payment was? 

Would a more customer focused IP like Payplan or one local to you, put in a bit more effort to get an IVA over the line?

What is a voluntary charge?

When I've spoken to HMRC previously about our finances, they accepted we are in hardship and said they'd stop enforcement if I am in regular contact and wouldn't agree to a payment plan at the time due to how little finances we have available.

Citizens advice have also spoken to them on my behalf to which a 2 month period was agreed for me to focus on trying to get out of the debt. However, before that expired I received notification that the debt had been moved to a collection agency, and they wouldn't give me a solid reason as to why this has happened when it was agreed not to happen.

I didn't know The Advice Center were seen in that way, theyve seemed great so far. 

Are Payplan typically up for a fight? I don't know of anyone local to me that handles IVAs so will glady take advice on who would be best to approach.

I tried step change but because there's self employment debt they've referred me to business helpline. I called them yesterday and was told I'd get a call back. I've not heard anything today. 

fatbelly

Ah yes, you may get the same response from Payplan. Not sure whether they touch business debt*

A voluntary charge is where you get a solicitor to draw up an agreement that the debt be secured to your house and a charge entered at the Land Registry. You can add conditions such as 'no order of sale'. The debt then just sits there until you move. I expect HMRC would want 8% interest to be part of this. It's not something to jump into but just to be aware of

*actually they do

https://www.payplan.com/blog/new-free-debt-advice-service-for-small-businesses-and-people-who-work-for-themselves/

Phoenix72

UnfairIVA said:

fatbelly said:

TAC are one of the IVA pushers we see a lot of here. They typically want their 4-figure fees for filling in a couple of forms, not an extended negotiation with  HMRC

I can see that with your share of equity being 35k and the HMRC debt being 30k then they are playing hardball and may consider issuing a statutory demand to which you would suggest a voluntary charge.

A couple of thoughts

Would they consider a monthly instalment direct to them of whatever the iva payment was? 

Would a more customer focused IP like Payplan or one local to you, put in a 

Are Payplan typically up for a fight? I don't know of anyone local to me that handles IVAs so will glady take advice on who would be best to approach.

I'm not sure what there is to fight. HMRC take a typically hard line on those who have equity in property - they wouldn't be doing their job if they didn't.

I think it's a bit of a push to expect to come out of this with £30k equity at the end of it. HMRC will have no qualms about the bankruptcy route if need be.

ManyWays

With that much debt, HMRC have a veto over any IVA. I don't think you should consider agreeing to that clause. I dont think you would get a better result now by trying a different IVA firm.

Is the IVA being proposed a joint one? What is the proposed monthly payment? How large are your debts and your wife's debts? How much equity is there in the property?