After my business failed 3 years ago, I decided after much consideration to take out an iva. My debts totalled nearly £80k with the vast majority of them being for business rates on a retail unit that I had been wrongly billed for and were backdated to the sum of 70k over 3 years. I closed my shop down even though I had 3 years left on the lease as I was losing money on a daily basis. The shopping centre decided not to pursue me for the remaining rent as they knew I had no assets and they have since gone into administration. I included all the business rates at that time into the iva, however I have since received rates bill for the following years of the lease, after doing research I have discovered that I am liable for half the rates payable even if the unit is vacant as my name is on the lease. I had absolutely no idea that this would even be an issue as I am longer in the unit. I rang my iva company at the time of the first post iva bill which was rsm tenon, they told me to send the paperwork in which I did, and any following bills I have forwarded to my new company, grant Thornton. . I then received a letter from my supervisor which informed me that this debt cannot be included in the iva. I have since received a court date for the non payment of these rates for next week. I honestly had no idea I would be billed for these rates when I set up my iva and I don't know what to do. Most of the dividend from my iva is already going to land and property services for the previous bills. As they are billing me for approx £17k each year, I clearly would have no way of paying this and therefore it is looking likely that I am going to be forced to file for bankruptcy if they are going to continue asking me to pay this money. It's very frustrating as I'm now well into my 3rd year of the iva. It seems like bankruptcy is my best option and I have decided therefore to not pay any more iva payments as this seems pointless at this stage. I have a few options now - pay for the bankruptcy myself using the iva payments I'm no longer paying, or waiting to be made bankrupt although I'm not sure I can deal with he creditor letters once they know I'm not paying the iva. Also can I file for bankruptcy whilst in the iva or do I have to wait for it to be officially failed. What a mess :/
I would stop paying into your IVA, save the funds for the bankruptcy fee and then file for bankruptcy. You will probably have to wait until your IVA has failed though
Surprised that the current rates bill can't be included in your existing IVCA
They said because the 'new' bills are after the iva was agreed, then it couldn't be included. Would prob be around another £50k so would significantly affect the dividend per pound I suppose
Don't think it has been Andy, although you would think land and property services might have mentioned this when they agreed to the first iva as 90% of the debt was to them in the first place. If I had known I was going to be billed for the rates even though I was no longer in the unit I would have gone bankrupt in the first place rather than take out he iva, as I feel now like I've wasted time and a lot of money paying an iva that had no chance of succeeding in the first place
If the lease was not terminated at the time Land & Property can chase for the rates owing so it is risky putting the IVA forward without the property being relet or the lease teminated. Quite often the landlord will not terminate the lease as they would become liable so bankruptcy would the guaranteed way to terminate.
Land & Property will likely pursue bankruptcy as this will then mean they can chase the landlord so it may be worth just sitting back and let them do it. The courts are pretty much shut for the next two months anyway so personally I would not waste my own money when Land & Property or possibly the supervisor will petition.
It's so frustrating trying to decide what is best to do. I've recently got engaged, and I feel so useless as my credit rating means I'm either gonna be the reason we get rejected for a rental property, or because my fiancé won't be allowed to be the sole name on a lease even though I will be able to contribute. I was so responsible with money, and the business failing is affecting everything. Im in a good job, with a good steady income but I know that means nothing as far as renting is concerned because as soon as they see I'm bankrupt I'm gonna be a high risk. Just having a down day I think, but can't help worrying, and I hate ruining things for my fiancé too when he's so excited about the future
Try and rent in the private sector using the local papers as these landlords will not run credit searches. Alternatively speak to the letting agent in advance and trust me there are plenty of agents in N Ireland who have had to avail of the insolvency laws themselves!
I do know some agents in N Ireland so if you have no luck drop me an email and depending on where you live I may be able to help. Sometimes an employer reference or recommendation from an existing landlord is sufficient and no credit check is needed.
This is definitely something that should have been highlighted to you when you entered into the IVA. Land and Property Services are an aggressive collector, and the contingent ongoing liability for empty property rates should have been considered by the IP acting for you.
Under bankruptcy proceedings the Trustee will be able to disclaim the lease, thereby removing any ongoing liability.
