Hello all I am posting this on my husbands account...beachblanket.
My husband has suffered with depression on and off for more than 20 years. This year due to a number of culminating factors his health has deteriorated to a depth that it had not previously reached...he almost took his own life. Through medication counselling and pshyciatrist's help he is now relatively stable. Our IVA firm have been great and gave us a 6 mth break which is due to start being repaid this month. Unfortunately we have no chance of meeting the payment of around £500. We have stumbled on over the past few years and have not sought help from anyone but I broke down the other day and finally told my parents everything. They are going to try and help us. My husband usually dealt with everything relating to financial matters so this has been a steep learning curve for me to try and sort out .The IVA firm said that it may be worth asking for financial help from relatives to offer a full and final settlement. My question is this, technically we still have £31k pay into the Arrangement part of which would be the house remortgage. Originally our house was valued at 137k with approx 40K of equity that figure is now down to about 120K and 20K equity. If we were made bankrupt I expect our creditors would receive about 17-20K? We also now owe HMRC about 4.5K in tax (2011-2012 plus this years expected) My parents think they can raise about 13-14k possibly more given more time. I know this is no where near expectations but any idea if this is worth putting forward to the IVA we could then try and settle the TAX separately? I just don’t want to raise my husbands expectations only for them to be rejected outright.
Any help or advice would be really appreciated many thanks Laura
Beachblanket. This is awful. I know it is so easy to say but your husband must try and not let this situation cause further distress.
Given you have informed your IP of the situation, and indeed they gave you a 6 nonth break, I am somewhat surprised they havent suggest a variation creditors meeting to you.
Are the tax debts within your IVA?
Completed IVA - August 2012 pheeeeeeeeeew
Only my opinion - Nothing More Nothing Less
Hi TheArtist,
Thanks I am trying to act as a buffer so he doesn't take it all on himself again...he couldn't cope with it now hence asking the question above.
They haven't suggested a variation meeting, what would that actually mean change the terms of the IVA?
The Tax is not part of the IVA it has accrued due to having to spend what was set aside to pay it.
I just need to know if this will avert us going bankrupt. At this moment in time there is absolutely no way we can keep up the payments due to his ill health, he is self employed, somedays he can work then he is off again for weeks at a time. We had to stop all of the 'health/employment insurance' a long time ago...we couldn't afford it..ironic really. Thanks Laura
Forgot to say I have spoken with our IVA administrator today and he said thay wouldn't put forward an offer that they didn't think would be accepted...Ok..makes sense....but he won't tell me what he thinks is a reasonable offer.
I just need someone to let me know what they think so I can get things straight in my own mind and sort this thing out one way or the other..
I wish I could offer a solution for you but am only able to offer you all my best wishes for the strength to pull through this difficult time. Remember that what ever happens you have each other and supportive, loving parents and can probably ride any storm.
Laura, firstly may I say that there is masses of support on this forum, should you need it. Even just for a whinge or whine, someone will always respond.
A variation order, arranged by your IP, would be a revisit of your proposals given the chain of events that have happened since the original. It is not uncommon for a variation to take place for serious illness intervention. Sounds like yours is.
You would make a revised offer (a lowering of dividend) based on your current circumstances making it clear that the variation to the IVA still represents the best offer you can make to the creditors giving them the best return. I have mentioned before - a percentage of something is better than all of nothing.
I think that whilst the payments are lower, the term is not extended. This would need clarification by an expert.
Your IP however, still has the discretion to lower your payments by 15%, without involving your creditors.
Laura, there are always alternatives. But I suggest you call your IP and ask the question. I am sure they will help. Remember, they work for you!
Completed IVA - August 2012 pheeeeeeeeeew
Only my opinion - Nothing More Nothing Less
Hi,
He did explain the 15% reduction but currently we still couldn't get anywhere near that. Our income has been really low this year. Now we have increased payments to take into account the break/arrears.
Our usual payment is around £400pmth and due to the payment break we have approximately four years left...5 with the remortgage clause. So £19200 minimum over the 48mths. £24000 over the 60.
My parents could potentially raise somewhere in the region of £13-14000 at the moment so that would be the best offer I'm afraid.
They then may be able to help us with the tax later on...it's all ifs and buts at the moment though...Thanks Laura
Mel Giles, IP, on here would be far more qualified to offer advice on this Laura. Contact her through, Ask a Question, on the left hand side of this page. But from of point of view, I think, given your circumstances, thats a pretty good offer.
Completed IVA - August 2012 pheeeeeeeeeew
Only my opinion - Nothing More Nothing Less
You might be able to negotiate with HMRC (tel: 0845 3021 4353) over paying the tax bill in installments, particularly after explaining these awful circumstances. (I've been on the phone to them today, and successfully managed to defer £2k in corp. tax payments due end of this Month, until the end of Feb. 2013. All it's going to cost me is £7.50 in interest (a v. reasonable 3% p/a) - no penalties). If satisfied that you have no other access to credit to pay the bill, they should be sympathetic.
I sincerely hope this helps.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
Beachblanket, so sorry to hear what you're going through. I do know what it's like - we are about to embark on our IVA, but are in this situation mostly due to my husband's recurrent depression over the last 12 years. He too was self employed and the main earner so I know what a nightmare this can be. And he too has hit the real depths before. I plan to take over the responsibility for finances in the future, which is scary as he has always done it (he works in finance.
I sincerely hope your F and F is accepted and that with this additional burden lifted, your husband can get better. I'd be happy to talk if you need to.
