If my circumstances change

[RUNNING MAN]

Hi.I had a failed IVA,I paid £10k but am now bankrupt.Ive had an OR meeting etc and they want £200 p/m plus 60% of surplus.So i'll pay about £7,200 in total over 3 years.
If my circumstances change in the next couple of months,can I go to the VAS(people who organise Inland Revenue debt arrangements) and try to negotiate a settlement figure? for example 20% of the debt,to be paid by a 3rd party in full and final settlement? C&E hold 75% of the debt,they're owned £42k.Ive been in bankruptcy 3 weeks and its destroying me day by day.What are the chances of them agreeing it? Then i'll get an IVA organised with an IP to exit the BR in court.

[Adam Davies]

Hi
Why not speak with an IP directly,your case is quite complex and will need full disclosure of all the facts and figures.Both Ian Millingon and Melanie Giles should be able to help you.There contact details are on the experts page
Regards

[ianmillington]

Hi Running Man

Once there is a formal insolvency HMRC will deal directly with the OR and IP and frankly negotiation by you will be difficult in the extreme.

Can I assume you have a poor compliance record? If so, that makes life difficult, but not impossible. If there is a genuine prospect of rehabilitation then they will look at it. You need a frank discussion with your chosen IP, who can then get an authority from you to discuss with HMRC. My relationship with them (and no doubt Mels is too) is that if we put a case to them they will tell us straight whether they will look at it,
Basically if you have failed to fill in returns and accounts for several years that is seen as disregard of your tax affairs and more serious than simply having been unable to pay. Even then, things might be salvageable. The most extreme case I recall was a person who delivered 9 years of accounts and SA returns prior to the creditors meeting.
By the way, who petitioned - was it HMRC or the Supervisor?

Ian

[RUNNING MAN]

Many thanks for your replies.
My situation has changed slightly as a third party has agreed to pay £18,000 as a one off payment in order for my bankruptcy to be annulled.
This money will be paid as one off on the basis and represents 33p in the pound.It also covers nominees,Trustee,and OR fees.
The alternative is to continue in the bankruptcy for 3 years and pay about £10k maximum.Will Revenue & Customs accept this offer? they hold 75% of the debt.I'd like to apply for a fast track IVA and get this paid up in June.

[MelanieGiles]

You are best advised to appoint a solicitor to act on your behalf with the annulment procedure. From experience I do not see you getting the bankruptcy annulled unless you pay the debt in full, however a fast-track IVA could work if you could ever persuade the OR to do one for you. They are actually quite rare.

I am seeing the Head of the VAS unit in a couple of weeks time so will try to find our what their policy on this point is post-bankruptcy.

[ianmillington]

I think "sceptical" would be a fair way to describe it, particularly if you intend to continue trading. This is mainly because the HMRC cannot vote to modify the FTVA proposal. However, I think it goes further than that - As you refer to C&E you have, I assume, been trading. In that case I don't think the OR can do an FTVA for you.

Can I draw your attention to:

http://www.insolvency.gov.uk/freedomofi ... Part_6.htm

Paragraph 20.46EA restricts the FTVA to fairly straightforward cases, specifically excluding those where there has been trading.

Based upon that, I believe you should be talking to an IP I think if you want to attempt a second IVA. Informally check with the OR first of course.

Ian