Bit of a sticky one this, but I will try to keep it simple.
My husband and I have been in an IVA for just over four years and all was going well until my husband set up his own business and accrued Inland Revenue debts which he cannot pay. After seeking advice this morning, he has booked a bankrupt hearing for Monday.
He has spoken to our IP this morning who are sending me a new income & expenditure form as I would like to try and continue with mine. I was wondering how I work out these new figures. Do I include the money that my husband contributes towards the bills (as hopefully he will continue to trade as before!!).
Really panicking as I would hate to go bankrupt at such a late stage and I don't know if this would affect the property that we rent. we are not in any arrears with rent or any utilities. Any advice would be really appreciated!
Sorry you are having such horrendous problems though and what a pity that your IVA looks as though it is going to fail after all this time. Is there no way your IP can assist you with anything?
You should be able to continue with yours. I believe you will have to put down your husbands contributions as they will want to see that the payments can be maintained and that your husband is still contributing to the household.
You should be ok with your property as you are up to date with everything so I don't think you have anything to worry about there.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Does seem a shame for the IVAs to be failed after all this time but if he has had advice there must be no alternative. You should show your IP your husband's last accounts or tax return to calculate the surplus. You will need to be aware that your husband could be subject to an income payments order so only your surplus can be used in the IVA.
You will also have to make an allowance for your husband's future tax bills or he could be made bankrupt again when the next tax bill falls due.
Hello all and thank you so much for your valued replies.
Thank you, that is a bit clearer. I have made a deal with him that from Monday I will be dealing with all his accounts and making allowances for tax and vat payments.
Does anyone know if you can still be registered for VAT when you are an undischarged bankrupt.
Thanks again, you have made me feel so much better.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If your husband is currently VAT registered any liabilities to that registration number will be included in his bankruptcy and he must ceasing usimng that number. If he still meets the registration threshold post bankruptcy he will need to register again and your local tax office should be your first port of call.
There is a danger that if the debts to the VAT office are large, they could demand a deposit from your husband otherwise they could refuse to reregister him. This would leave him in a very awkward position as he could not charge VAT with no number but is also obliged to given the size of his turnover. If this happens you both should make sure and take proper advice.
Yes he is currently registered at the moment. It doesn't really matter whether he re-registers or not as his turnover is not enough to be compulsary.
Also, debt collectors are not approaching him for payment, does he advise them that he will go bankrupt on Monday or does he keep them happy with small payments. The most pressing of them all is a bailiff who has called once already. Do we keep him happy or does he have to lay off as soon as we inform him of the impending bankruptcy.
If you advise of the bankruptcy he should not demand payments. Tell him the time of the hearing and that should be enough for him to back off. If there is a telephone number call the bailiff and advise you will ring Monday after the hearing with the bankruptcy number. They are normally fine so long as they are kept informed but do not pay anyone else.
Dear all, I just wanted to say a big thank you for all your good luck. It has been a very stressful and worrying few days. Will keep you informed of our progress.
You can easily separate your IVA from that of your husband, and ask your IP if you can continue to pay your share of the payments, or even see if it can be concluded on the basis of the monies paid into it to date. I have done this quite successfully for a few of my clients recently.
If your husband is struggling to pay post-IVA taxes, it would be worth him looking at the future viability of his business to ensure it is profitable. The non-payment of Crown debt is often one of the first signs of insolvency, and it may be that he will need to restructure all or parts of the business to return to making profits.
Hi Melanie, I made a mistake with the time of the IVA, we have just started our fourth year this August. Do you think, bearing this in mind that I could still try for a full and final settlement on the funds received to date.
Many thanks for all your good wishes....we were sat last night filling out the book for the hearing on Monday!! But are both relieved that my hubby has finally admitted defeat and orgainised a solution.
