Hi, I'm considering an IVA and I'm infact in discussions with a company. They havent been able to answer a could of specific points, so I thought I'd post here.
1. What happens if I get made redundant - is the IVA terminated or just put on hold?
2. What happens if during an IVA I get an overseas job, with tax free income. Is the disposable re-assessed? How does IVA work if you in another country and how does it all get marshalled by the IP?
3. Filling in forms just now, I know I have a tax liablity for year ending April 2008. I'm guessing it might be £5,000, so should I put the guess on my form or submit a return and wait for a determination? Would the IVA wait until I get determination from HMRC?
Malloo
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Suprised that the company you contacted could not answer simple questions like these - are you sure they are a reputable firm?
Anyway, to answer your queries:-
1 There is no firm answer to this one, as circumstances will dictate what will happen. Depending upon the sum of money (if any) you get from your employer, will determine the way forward, but it is usual for you to continue making your IVA payments as the redundancy money is absorbed in ongoing living costs, with perhaps a payment break at the end if alternative employment has not yet been obtained. Ultimately, a payment break for a longer period could be sanctioned by creditors by way of specific variation. You could also insure your IVA payments in the event of redundancy via a specialist scheme.
2 It is relatively simple to continue with an IVA if you move abroad - you just continue to send your payments electronically to your IP, but your disposable income will be reassessed if there is a change in salary and expenditure levels as a result of the move.
3 I would estimate the HMRC liability and advise your IP, and continue to submit the tax returns. Your IP will liaise with HMRC to agree the claim after the IVA has been approved.
Hope this helps and good luck with your application.
Good luck with your iva, have a look on www.iva.com for reviews on the company you are using.
Also bear in mind that it is advised to get a couple of opinions from different companies before deciding on the best option for you,
Good Luck
Be positive & look after yourself, there are more important things in life than debts....
