It is great to see that your parents are able to offer you a solution for the IVA, but do look at the wider picture in terms of what you should offer. Firstly what is the true level of your disposable income? If your income has dropped then so will the disposable income, in which case a lower offer of settlement is very possible and this could leave you with enough money to settle the tax liability as well, rather than sorting out one set of problems and leaving another untouched.
I suggest that you make an offer of full and final settlement based on the number of payments you still have to make, multiplied by the amount of your current disposable income. This may then leave you with sufficient monies from your parent's loan to cover the tax debt as well. Your own IP ought to be able to give you further guidance on his point - and don't worry too much about the equity sum, as it is unlikely that you would need to raise any additional funds given the high loan to value.
Good luck and let us know how you get on. Your hubby is lucky to have such a supportive partner, and he will need that ongoing support to get you both through this.
UpToMyNeckInIt - Thankyou again for the advice. We called HMRC this morning and they were absolutely fantastic. They have allowed us to pay £10 a month for the next 4mths and we can then review the situation then.
We have also spoken with Scottish Power - Council Tax - Skipton Mortgage Provider all of whom have been extremely sympathetic and helpful. It really does make a difference speaking to these people and being upfront. (council tax were quite difficult and dismissive at first)We are behind with all of the above payments but have verbally agreed plans to take the pressure of for the moment.
If anyone else is struggling don't be afraid...like we were... to pick up the phone and ask for help it isn't easy but you WILL feel better afterwards....and always remember your not the only one having to do this.
Melanie - Currently we have no disposable income at all. We are literally living off what we can sell and whatever business income does come in is usually already spent on essentials. We did an I&E in May before our payment break was agreed and it showed a shortfall then. This makes it quite difficult to know what to offer.
I know now my parents will struggle to raise the money to lend us as it will consume all of their savings and investments and although we were fully committed to the IVA and wanted to pay back as much as possible I don't want to put my parents in a financially vulnerable position either.
Our IVA firm has said they will not put anything forward that is unrealistic but will not give us a figure to go on. So we are stumped as to what to offer. Due to the break we have about 46 payments left Thankyou Laura
The post IVA debt to HMRC could actually be a breach in itself and this may be a debt that needs to be cleared urgently. This would bring the lump sum down to about £9k which could be offered then as a full and final settlement. Given the health situation I would hope such an offer would be acceptable and if HMRC are a major creditor they may support a full and final if the post IVA debts are cleared.
I am curious about the date of the IVA approval. Assuming you entered the IVA 20 months ago which it appears from the length of time you have left to pay, the debt to HMRC for 2011/12 would be captured by the IVA as the IVA would have been approved April/May 2011. If the IVA was approved before 6th April 2011 the debt is post IVA so when exactly was the IVA approved?
Apologies I have made a mistake... we entered into the IVA in March 2010 so we have actually got 28mths left plus the 6mth break which totals 34mths to go not 48mths. This is why my husband usually sorted out these matters!
HMRC were not part of the IVA.There was no debt originally owed to them.
The HMRC debt is for April 2010 - to April 2011 (£2300) plus an asumed amount for April 2011-April 2012 (account not yet filed)
Hope this makes sense.
Last edited by beachblanket on Thu Dec 13, 2012 1:42 pm, edited 1 time in total.
This does make sense and indeed the fact that the IVA has been running longer means a full and final settlement would be more attractive and perhaps creditors would accept what has been aid to date as full and final especially if there was a sweetener from your parents to at least address some equity.
Speak to the IP again and hopefully they between you there is an offer that can be put forward. I am sure creditors will be sympathetic but make sure HMRC are repaid in full as the last thing you want is a bankruptcy petition from them after the IVA has been successfully closed down.
Finally, get the paperwork done for the current year as there may be losses which would reduce the HMRC claim and also reduce any payment on account.
I emailed our circumstances and the offer of £5K to our account manager before christmas.
Heard nothing back so I called them last week only to be told that our account manager had left! Third one we have had all left without being notified. Anyway they never received the email!
Had a conversation with a new account manager and was told when asked that Phillip Allen our IP was not available (he never is and we have never spoken to him)
Had to go through everything again about my hubby and our situation (surely they have notes)
They flatly rejected the offer saying it was unacceptable.... and that it could pay for the IVA for the next 10 months!!!
I was then told we would need to raise near the £15K that would be released if the house was sold!!!.
It is now worth about £20k less than when we entered the IVA so how they arrive at the same figure I do not know...
I am going to get all of our paperwork together, along with a letter from the doctor and mortgage company and send it recorded delivery directly to Phillip Allen of Debt Lifeboat see what happens....
I feel like I am going round in circles with them..
How long does bancruptcy take to kick in after missed payments? We couldn't pay this month after the 6mth break we were granted.....Thanks sorry for the moan...Laura
