IVA advice

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Post by leefall » Thu Oct 11, 2007 5:41 pm

I need some advice regarding a iva, which we think is our only way out..

We have debt of 10,000 to the tax office
1,300 council tax
and 13.000 personal loan.

We are currently self employed which we are ending the end of november, can we do a iva for both self employment tax and our personal bills? will it affect our house and will the tax office accept a IVA

Many Thanks for your time


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Post by mikebdomain » Thu Oct 11, 2007 7:44 pm
Hi Leefall and welcome to the forum,

Sorry, I can not answer any question regarding the IVA. I just wanted to say hello, 1 question though; Do you currently have any equity in your property? Obviousy if you do, and it exceeds the amount of debt you have, you will not be able to enter into an IVA.


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Post by Soulgrowth » Thu Oct 11, 2007 8:27 pm
Hello leefall

I'm not an expert here but I just wanted to say welcome to the forum, you are in the right place for your questions ... and one of the experts will be along shortly to help you out [:)]

All the best





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Post by leefall » Mon Oct 15, 2007 11:37 am
hi thnks for getting back to me i dont think we have any equitity in the house if we do it only a couple of grand, can anyone offer me some advice as what to do as im really worried about loosing the house
many thanks

Adam Davies

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Post by Adam Davies » Mon Oct 15, 2007 12:44 pm
Hi Leefall
As one of your debts is with the Inland revenue and they hold more than 25% of your total debt I feel that you will need to contact them and see if you can come to a payment arrangement with them.I would do the same with the personal loan and council tax.I am not sure how the IR will be towards an IVA and my gut feeling is that they will be negative.
Are you self employed ? Do you have further tax liabilities pending ?
You could also consider bankruptcy and if you only have a small amount of equity it is possible that a third party[family/fiend] could purchase that from the Official Receiver so that you can keep hold of your property.
The other option is

Andy Davie
IVA.co.uk Spokesperson

About me:

IVA Helpline: 0800 197 4838
Andam Davies


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Post by kpw » Mon Oct 15, 2007 12:56 pm
Normally you should be able to include Income Tax Liabilities in an IVA if they are more than 2 years old.
So at present I would suspect an iva would not be possible as you only have one other relevant creditor at present (Personal loan). You would norally need at least 3 unsecured creditors for an IVA proposal.
A Debt Management Plan would be worth looking at, as this avoids Bankruptcy, and would offer the creditors what you can afford to pay them. (Your Tax liabilities would have to be dealt with seperately). This can be reviewed when your circumstances change. Your property would be safe although creditors can apply for a charge on your property so that in the event of you either selling or remortgaging they would get their money back that way.
However any of the IP's who post on this site should be able to advise more exactly.


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Post by ray_a » Thu Oct 18, 2007 6:40 pm
Sorry just seen this I think the Inland Revenue and the Council will be able to stop an IVA as they are 25% or more creditor!

In saying that have a chat with your accountant who may be able to talk to an Insolvency practioner and see what can be done.

Good Luck


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Post by MelanieGiles » Thu Oct 18, 2007 10:06 pm
I personally find HMRC's Voluntary Arrangmeent Service in Worthing extremely commercial and supportive of IVA proposals, although I have recently learned that they have a policy of not voting if the debts are lower than £8,000. They will, however, only support a proposal if they feel that the best offer is being put forward, so take some professional advice to decide what to do for the best.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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Post by catullus » Thu Oct 18, 2007 10:36 pm
I would echo that Melanie


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Post by BECKY » Fri Oct 19, 2007 5:31 pm
Dont know if this is the same thing but for self assessment tax inland rev put in a claim for £3000 in my iva and voted no. I was really annoyed as I dont owe them anything in arrears and my biggest yearly bill has been £200. I have made extra payments to iva to cover the self assessment for 06-07 , so they wont be out of pocket anyway!! Might be totally different than the above but that was my experience with them
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