I have been in an IVA for 4 years which is due to end in July next year. I had a back condition and have been unable to work for a period. I was offered a payment break from the IVA however during my sick time I was given the opportunity to buy a mobile disco and lent money off a relative to do so. I did not disclose my earnings from the disco to the IVA provider however they have found out regardless and now I am at risk of failing. I have supplied them with receipts and been advised that they will consider. I am looking for advice moving forward.
Hi Leroy. You are really in the hands of your IP on this one. Hopefully they will arrive at a figure you owe and allow you to repay this, either over time or tagged on to the end of the IVA by way of an extension.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
We are worried sick, we eared £600 in 6 months doing the odd disco, we know were in the wrong but were so desperate as I only get SSP and with 3 kids all starting new schools and needing uniforms, shoes pe kits coats new bags etc, I had to put them 1st, just really hope they offer us a solution as Im at the end of my tether. My health is really starting suffer with all the stress.
It's in nobody's interest to fail the IVA so if this is the sum you earned then I am sure your IP will just extend the IVA period to capture these earnings.
At worst you will have to extend your payments to take into account the payment break and the share of additional income .... really don't think it will come to anything else !
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
We are so worried at the fact that we didnt disclose the fact that we had been earning this extra income we are more than willing and praying that they will allow us to pay back the extra that we have earned but worries sick that it will fail because of our dishonesetly which was infact desperation
Clearly you realise the mistake you made and whilst it could end in a failed IVA thats highly unlikely. You have provided adequate reasons for non disclosure of the extra earning but the stress caused would make you think twice about keeping anything from your IP!!
I'm sure a way forward can be found easily and like everything in an IVA,an open dialogue with your iva firm is key to success.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
If you worked as a DJ you would be obliged to complete a tax return. This would likely show little or no profits which would mean there was no problem at all.
Speak to your IP as it sounds more like a hobby than a job. HMRC may not even ask for a tax return where turnover is so low and profits negligible. This should not lead to the failure of your IVA.
the iva have been back in touch just picked up a message on my phone to say that due to this they are going to FAIL the iva ...even though it was due to end in aug 2015 ....i m devasted said the main reason was that the disco s that we had done for 6 moth and had made around £600.00 from was not yet registrede with HMRC this was out full intention to do in the coming weeks ..... feel so so gutted and can9ot believe that this has happened ..please help ...what happens now ??
You have an obligation to inform HMRC once you commenced self employed and if this is not done within three months you may be liable to a fine. However, if you now inform HMRC and there is no tax due the fine may be very small or in some cases completely waived.
I think it is a bit harsh to threaten failure over something so small but of course I do not know the entire situation or what is in the proposal. I suggest you arrange an urgent face to face with your IP, notify HMRC of the period of self employment [including the cessation date if you no longer operate the business] and hopefully this will mean the IVA will not need to be failed.
We send off all the bookings that we had done, and offered to pay back whatever we had to out of this money made from the disco,and also than for here on in we would tell them on a weekly basis or monthy which ever suited them best and now that we will be earning more and that im now back in work our incoming would be more and we would be able to pay more in until the iva ends in aug next year byt they said this has been decded and will now fail ...so so gutted feel like our worlds falling apart as after 4 years in a tunnel was looking forward to seeing light at the end of it and now back where we started ..they just said that it has failed and in 2 to three months time we will get a certficate then added that once the business is registrered which it will be already on the case that they see no reason in as reapplying for another iva with them ........my heads all over the place as you can imagine , yes i know realise How stupid i was and i hate myself for this I just dont know where to turn or what to do have spoken to a national debt line how were lovely but they kept mentioing bankrupty .....even this work along scares me ..as i want to keep the roof over my familys head and the thought of losing my house now too ...Just when i thought after 4 years everything was beginning to fall into place ......... just gutted beyound belief....dont even know if its worth carrying on .....
