Hi This is my first post and have read lots of threads here. The question is whether I could do an IVA with the following set of debts below. I own a property in Spain which I can not sell & costs have rocketed due to the euro rate.
I have done an Income/expense form with CCCS and disposable income per month would be around £700 per month. My biggest worry is HMRC as my biggest creditor as they are threatening to make me BR but not sure if they would accept an IVA.
Any advice would be most welcome as at my wits end. I'm a self employed computer programmer and BR would stop me working.
First Direct £28,726.80
Mint £7,318.83
Marbles £9,485.81
Morgan Stanley £4,877.41
Goldfish £3,000.00
MBNA Loan £2,408.48
MBNA Credit Card £17,540.93
Egg £9,643.68
HM Customs & Excise £56,700.78
A 30p in the £ dividend is appropriate for your IVA proposal, but would need to know more about the Spanish Property and who funds the costs associated with it.
Were any of your current debts used to pay for the Spanish property?
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
HMRC support IVA proposals that are best offer, all creditors are treated equally and all assets are addressed. They do not like non compliance so any outstanding returns should be submitted even if you do not have the funds to pay what is owing.
Given the threat of BR it is imperative that any proposal is put forward quickly. The Spanish property can be dealt with in the proposal depending on equity, rental income, mortgage payments etc and is not unusual.
You will need to provide cash flow projections or possibly a profit and loss showing allowances for future PAYE, VAT and personal income tax [where applicable]. Finally, in bankruptcy you should be able to continue to work as it is in no one's interest to stop you from earning a living.
Thanks for that. The ongoing costs in Spain have been included in my income/expenses with CCCS, & thankfully have just managed to get a 1 year fixed rate mortgage arranged with Spnish bank to hopefully give me time to sell.
The property is currently valued at 190000 euros, 160000 oustanding on mortgage. Paid 250000 euros for it 5 years ago before my very messy & expensive divorce.
Yes self employed Computer Contractor, director of Limited company & currently working for RBS!! The tax debt relates to 06/07 and 07/08 but my tax returns are fully up to date.
But yes I feel budget would be maintanable as long as I remained employed. I have been doing this for 15years now, just Divorce and Spain has caused all the trouble.
Are the debts to HMRC company debts or personal debts and when did you form the limited company? Are HMRC threatening a winding up order or a personal bankruptcy petition?
Last edited by Michael Peoples on Mon Feb 09, 2009 1:57 pm, edited 1 time in total.
You do need to take advice from an insolvency practitioner directly, who can explain to you all of the options available to you. An IVA seems a sensible way forward if you wish to avoid bankruptcy proceedings.
Seems like an IVA is certainly an option and given that the property in Spain is up for sale the main question raised would be if it can pay for itself until sold. If it can be rented out for long enough each year to meet the mortgage and maintenance costs there would be no real pressure to sell it. If it cannot creditors may seek an auction sale as they would be loathe to allow you to continue the mortgage payments indefinitely. Any shortfall in the property would be included as a debt in the IVA and any equity raised would go into the IVA pot for the benefit of creditors.
Given the complexity of your case a face to face meeting would be required with your IP which you should arrange as soon as possible.
To find a good IP, either visit www.iva.com where you will find a list of companies and reviews, or click on the expert link on the left hand side of the page.
All of the professionals who post on here come highly recommended, and will be able to advise you about your options.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
