We (my husband & I)have an IVA, we are pretty much up to date with payments, nearly 3 years in and have asked for a review to reduce payments. We have a car worth about £4,000. We rent our home. We owe inland revenue &7,000 and cannot pay, they are saying we will have to go bankrupt. Is it worth us selling the car and pay some tax and try to catch up or should we go bankrupt? If they force us into bankruptcy do we have to pay the fee?
Hi Sarah - is it the Inland Revenue saying you will have to go BR? Does your IP know they are chasing you for this debt? Not sure whether selling the car would help as I don't think you can pay off one creditor in preference to the others. If you could answer the couple of questions that will help a BR assist expert to help you! There will be one on line soon. Regards
Hi Vicki Thanks for quick reply. Yes the Inland Revenue are saying we have to go bankrupt if we do not pay them. We have informed our IP ( a week ago) and are awaiting their response and the waiting is very stressful!!
Hi Sarah - I know I hate waiting too! Have you posted on the IVA help sister site? Melanie Giles is an expert on that site too and you may get a response from her on there. The link is at the top left of this page. I am not certain whether this debt can be included in your IVA - but I have heard that the inland revenue are normally happy to make arrangements to help settle their debts. More so than other creditors like banks. An expert will be here soon
One of the key facets of a successful IVA for the self-employed is that you continue to pay taxes on the due date and file your returns appropriately. HMRC are rather unforgiving when it comes to post-IVA arrears.
Selling the car is an option, but do be sure that you are not just putting sticking plaster on a problem which exists due to poor trading results and cashflow. Your IP ought to be able to negotiate on your behalf with HMRC if they feel the IVA is worth saving - but at the end of the day you also have to believe in its viability.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com
they are saying we will have to go bankrupt
Posted - 30 June 2008 : 19:31:31
