We have had an an IVA for the past 2.5 yrs. We do not own a property. Our income comes from a self employed partnership we are independant distributors for a home shopping company. We had to have an IVA rather than go bankrupt to protect our income as it was in our contract that our disributorship would be cancelled if we went bankrupt. We have just found out that this rule no longer applies as the parent company has been sold and as long as our account is ok there is no problem.
As we are paying alot to IVA and cannot keep up with it and the income tax we owe we now think it would be better to go bankrupt. Our income is variable around £2,500 pm we pay £1,174 to IVA. We owe £6,000 to inland rev. We have sold alot of our belongings to keep going and can no longer do this. We applied for reduction in payments and were refused. Our only asset is our car. We rent our house £550 pm we have 3 children and really do not want to move. Where do we start.
I am truly sorry to hear that after 2 1/2 years of contributing it seems that you can't continue. It also seems a shame that the IVA company is not prepared to work with you to make it work. I would be interested to learn which company this is .
If you are struggling to meet the current IVA payments then paying the income tax will also be a major problem.
What value is your car?
You should also understand that you can continue to trade with the permission of the Official receiver BUT there are some issues that it is important for you to sort before you take this step.
1. Business bank account - unless you are trading in your own names.
2. It is a criminal offence to obtain credit of 500 or more without first advising that party that you are currently Br. ( just thinking about the distribution channels etc )
3. There is the posibility that your IVA provider is obligated to make you Br so this would save you both nearly 1,000 but you would need to speak to your IP about this.
Incidentally what has your IP said about this new position. Perhaps if they know you are very serious about going Br they might be more helpful?
If you eventually decide that this is the way to go you may wish to get some help along the way due to the business issues associated with your application.
Please feel free to get as much help from the forum as you need.
Paul Johns Assisted Bankruptcy Specialists Reviva UK www.revivauk.com
If your IP is being silly and will not listen to your pleas for help, they are not doing themselves or your creditors any favours if they refuse to at least put forward a request for reduced payments.
If you are paying over 50% of your drawings into the IVA this ratio is obviously too high. I too would be interested to know which firm is representing you - and you could do no worse than have a word with Paul Johns who is very experienced in mediating between IP and client. As a professional, I just find it sad that people like him have to!
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
think it would be better to go bankrupt
Posted - 21 April 2008 : 23:57:38
