demand for just over 30k which I cannot pay

[steve.w]

I used to be self employed, and now find myself with a statutory demand for just over £30k, which I cannot pay.
I have £5k which I could pay them now, and the rest in installments of up to £100pcm.
Would they accept this?
Thank you for your help!

[gizmo]

I'm not an expert but know a fair bit about stat demands ahving being served with one in November. My understanding is that you can apply within 18 days of the date of service of the stat demand upon you to set it aside. You have however, have to have grounds to do this, eg the debt is not owed by you; you have written to the person named in the stat demand to try and reach an agreement but hewy have simply not responded to you in a reasonable amount of time. there is info on stat demands on the internet which I found quite helpful - I just typed statutory demand into the search engine. The bottom line is that you have 21 days from the date of service to try and sort it out with the creditor other wise they then have the right to petition for your bankruptcy. You could therefore contact them and see if they will accet your proposals for repayment, see if there is any other way you can raise the money to repay them. I would strongly recomend that you do what I did and that is pick the phone up to Thomas Charles and get some advise from experienced debt adviors. They set us on the road to our IVA which hopefully will be accepted tommorrow. This is a horrible experience I know but you need expert advice so I would ring them - my debt advisor was Doug Prior and he was very good and very knowledgeable about the stat demand. Thomas Charles number is 08000725988.

[MelanieGiles]

Hi steve.w

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[MelanieGiles]

Will try again!

Gizmo is absolutely right regarding the procedures. I suggest that you make your offer to the creditor firstly - they might accept, and if this is your only debt you will be sorted. Who is the creditor? Inland Revenue perhaps?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[steve.w]

You are correct, the statutory demand is indeed from the Inland Revenue.
Do you think they would accept an offer of £5000 and the rest over several years?

[MelanieGiles]

Given my detailed working knowledge of the Inland Revenue over a number of years, I suspect not - but is is always worth a try. Do you have a property with equity in it? If so, maybe you could release some of this to improve the offer. Do you have any other debts?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[steve.w]

I have a couple of smaller debts.
My house is mortgaged to 85%, and I am just taking a loan for £25k.
I am intending to pay my other debts so I can keep up the repayments on this one.
I hope to be left with around £10k, which I could offer them, but thought I would start with a lower offer so I can increase it.
Is this the best way to go about it?
I don't want to lose my house.
Thank you for your support!

[MelanieGiles]

No Steve, this is not the best way forward.

What you need to do is look at doing a settlement with all creditors including the Inland Revenue. Can you now let me have a complete list of all of your debts, so I can advise properly.

Also, what is your house worth, how much is the outstanding mortgage? And how much money do you have left each month after paying all essential household bills (but excluding any debt repayments?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[steve.w]

House value - £110,000
Present mge - £85,000

Debts
Car loan - £7500.00
Couple of credit cards - £1500
Inland rev - £31,000

Tried to remortgage, but they said no.
I can get a loan for £20,000 which is underway at the moment, but to pay it, I have to clear my other debts, leaving this one, and the mge.
After bills at present, I am not left with much at all, having gone from self employed to a permanent position.
I am losing sleep over this now.
Its a mess isn't it?

[MelanieGiles]

Sorry for more questions - is the house in your name or joint with a partner? Is the £20,000 loan going to be secured against the property? If this is the case, then I suggest you use the £20,000 to offer a full and final settlement to your creditors which, if done as an IVA, ought to give back approximately 35p in the £.

I think HMRC would accept this, and that would then leave you debt free. Your chosen IP will need to demonstrate that this represents a better option than bankruptcy, so I am keen to know whether the property is registered in your sole name.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[steve.w]

The house is in my sole name.
Divorced and single.
I haven't told the people I am getting the loan from about this debt, and yes, it is a secured loan.
How do I contact someone about an IVA?
Do I just pick a Solicitor from the Yellow Pages?

[MelanieGiles]

You do not need a solicitor but an insolvency practitioner, and there should be some advertising in your local Yellow Pages.

Try and find someone who has a good working knowledge of HMRC's specialist Voluntary Arrangements Service in Worthing, which is the department who review all IVA proposals. Ask the IP what his/her success rate has been historically in getting voluntary arrangements accepted by the VAS.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[steve.w]

Okay, I will do that.
Many many thanks for your help!
Fingers crossed...