We are now being pursued for business rates. What is our position ?

[Gerard.m]

my wife and I entered an IVA last year. We are now being pursued by a local authority for business rates. We informed them before thr IVA that as the landlord had distrained our goods that our business had ceased and we were seeking an IVA. We were paid up until we left the premises and the local authority closed our account. We have spoken to them and explained that they never raised the question of the landlord holding us to the lease which they subsequently did some time later. Obviously we can't pay them and if the issue of the lease had been raised they would have been included. We feel we have no choice but to declare bankrupt. Should we do so, as we are now self employed foster carers we would lose our only means of employment and we are both elderly.
What is our position ?

[Adam Davies]

Hi and welcome

Have you chatted this through with your IP ? They may be able to include the debt in your existing IVA

Will bankruptcy stop you from fostering ?

Regards

[Gerard.m]

Hi
Thank you for your reply.
Yes we have spoken to our IP and as our IVA was set up approx 3 months after we ceased trading including the local authority wouldn't, because of 3 month period of grace (no rates levied), take into account the post IVA rates they are now claiming. Or we could risk trying to dissolve the IVA and set up another to include the future rate liability. If they had not closed the account and had brought up the future liability they would have been included, we acted in good faith.
As for fostering its probable that because of financial insecurity and as self employed we would be stopped.
Regards