Advice regarding debt - IVA offer seemed dodgy?

Adrian1212

Hi all

I have around £8000 of debt from credit cards and loans which sadly the minimum payments crept up on me after the no interest period ended. They have all been sold to debt collection companies.

I also have £7000 HMRC VAT debt which was for a company which never even traded. They kept sending me estimated VAT bills and I told them that the company never traded but they seem to not be willing to accept this.

I also have £1000 council tax debt to one council and £1800 to my new council. I’m currently paying £65 a month off the £1800.

I contacted a company for advice, they advised an IVA and they told me they would call the council and HMRC to obtain exact amounts for my debt. 

Next thing I know they are setting my IVA up and they ask to call me. The advisor explained on the phone that the two councils I owe money to don’t accept IVAs. They also said that HMRC don’t accept IVAs and will likely just reject it so they said they would leave these out of the IVA.

Next they told me when the IVA company calls me that I should tell them that I have no council tax debt and no HMRC debt, the advisor said that if I answer yes to these questions that it will make me not eligible for the IVA. 

The advisor also told me to lie about my partners income and owning my car… 

I got a bit freaked out by all this and thought I would ignore the call and come here for some advice? 

Is it true that councils and HMRC can refuse to accept an IVA? I was under the impression that they could decline their vote at the formal meeting but if the majority of creditors agreed then they would have no option but to abide by the IVA? 

Appreciate any advice please, feel a bit lost now really. 

Grumpelstiltskin

Two quick words barge and pole.

Do not touch this with a fifty foot long one.

Council tax and HMRC are vital to keep on top of, did you provide accounts for the company? Did you have an accountant?

Forget other unsecured debts at the moment.

Adrian1212

Grumpelstiltskin said:

Two quick words barge and pole.

Do not touch this with a fifty foot long one.

Council tax and HMRC are vital to keep on top of, did you provide accounts for the company? Did you have an accountant?

Forget other unsecured debts at the moment.

The HMRC debt is about 5 years old, I started a company which didn’t work out whatsoever. The company never traded and no I didn’t submit any accounts or did I have an accountant. The company is now closed and deregistered for VAT but HMRC don’t seem to want to accept that the company never traded! 

Regarding the council tax I am paying £65 a month off the £1800 but I can’t afford to do this for both. When I asked if I could go below £65 on the £1800 council tax they refused and wouldn’t accept anything less. 

Grumpelstiltskin

You do realise council tax is the one debt you can in theory be sent to prison for?

HMRC you should have done something about it much sooner I doubt you can so anything now other than make arrangement to pay it.

HMRC can and do make people bankrupt.

Are you employed or self employed at the moment?

RAS

Please do not even think about an IVA for £8k, you'll repay it all and the fees will double it. Write and cancel.

Speak to business debtline about the HMRC debt. Also ask them about dissolving the company if you've not already done so.

Forget the consumer debt. Pay the CT as that really matters.

ManyWays

How much is your income at the  moment? Taxaid can help people on low income with tax problems: https://taxaid.org.uk/contact

sourcrates

Adrian1212 said:

I contacted a company for advice, they advised an IVA and they told me they would call the council and HMRC to obtain exact amounts for my debt. 

Next thing I know they are setting my IVA up and they ask to call me. The advisor explained on the phone that the two councils I owe money to don’t accept IVAs. They also said that HMRC don’t accept IVAs and will likely just reject it so they said they would leave these out of the IVA.

No, you didn`t, you contacted a salesman, who attempted to sell you an IVA.

Sounds like a very dodgy IVA lead generator to me, stay well away for them.

IVA`s are usually only suitable for homeowners, who cannot go bankrupt, and unless your debt is north of 50k, an IVA won`t be suitable for you.