www.iva.co.uk

Hi everyone, new member here.

I was wondering if anyone could help me with a question. I have to go to the High Court next week for the initial hearing on a bankruptcy petition brought against me by HMRC. I have engaged Payplan which has been working on an IVA proposal, and that's just about all complete. The paperwork, a financial outline and a covering letter have been sent to the court.

The thing is I will be appearing on my own at the hearing and need to argue for an adjournment in order to set up a creditors meeting and to see whether we can raise the current IVA return from its current 56 pence in the pound.

So just a couple of quick questions, and I'd be grateful if anyone has any insights they can offer to help me.

What's the precise procedure for these hearings? Assuming that HMRC will be in attendance what is the chain of events I should expect? Has anyone been through this process where they've had to speak in their own defence and ask for an adjournment?

My main concern is to be forearmed in case things don't go in the right direction. Should I expect HMRC to be hostile to any adjournment, even where the return on the IVA might end up higher than 56 pence?

Sorry for all the questions. I hope someone can help.

Simon

Hi fateanddestiny, hope I can help.

I have handled a number of cases involving bankruptcy petitions, the majority of which have been brought by HM Revenue and Customs. In these cases HM Revenue and Customs have treated the case on its merits and have been willing to consider the IVA proposal as an option to bankruptcy. Also, more often than not, the judge adjourned the hearing to the day of the meeting of creditors for the IVA to give all unsecured creditors the chance to vote on it, including HM Revenue and Customs; if the IVA was then rejected bankruptcy proceedings would then re-start. In these instances HM Revenue and Customs would typically accept the IVA subject to modifications.

I must stress that the above only applied to these cases, and for yourself things may well be different, but it is certainly possible to come out of the hearing with the chance of having an IVA.

Hopefully a forum expert can provide more detail on this.

I do have one question; did Payplan apply to court for an interim order when they became aware of the bankruptcy petition?

Many thanks for these thoughts Ralph. Very helpful indeed.

I know an Interim Order was originally discussed with Payplan but I think they figured that producing an outline IVA proposal in time for this week's hearing and then requesting adjournment might be a better option. I never did ask them for the precise reasoning.

Just on a matter of the procedure, rather than rambling at the hearing I've set out my personal circumstances and so on in a brief letter. Is that the best thing to do? And typically, what should I expect at the hearing? How many people are present and do they tend to be very formal? As you can guess, I have no clue what to expect.

Best wishes

Simon

Hi Simon

It's difficult to give any exact details on procedure as there are variables based on circumstances; HM Revenue and Customs may decide to enter evidence at the hearing, or they may decide not to attend at all and allow the petition to be heard in their absence.

In one case I prepared I remember the party answering the petition told me that the judge came in, asked if any material was to be introduced, was handed a copy of the IVA proposal, adjourned to the day of the meeting of creditors and left the room. The whole thing apparently took less than a minute.

It is definitely to your advantage that you are attending, and even more so that you have prepared details of your circumstances. I can't think of anything more you can do at the hearing.

Best of luck and let us know how it turns out.

Thanks Ralph! I'm cautiously optimistic, given the reasonable return on the IVA and the likelihood of a higher amount, but as I'd have to resign from my employment if bankruptcy was awarded I'm obviously a little scared. HMRC has written to tell me they will have a solicitor in the room. I'm considering telling them in advance that I'll be offering an IVA, though I guess that may be the kiss of death for an adjournment.

Good luck for the hearing. Will you let us know how you get on? x

Hope you get it sorted - good luck!

An Interim Order should have been applied for in the circumstances you describe, to give you protection until your application for an IVA could be properly heard. Asking you to turn up at a hearing unrepresented, is not the way I would have handled the matter, but you can be pretty assured that judges these days are acting very pro-debtor and an adjournment is very likely.

Even if an Interim Order was not obtained, steps should have been taken to get HMRC to agree to an adjournment in advance, rather than throwing you into the lions den so to speak (although the lion will in my experience be little more than a ***** cat at the first hearing!!)

Thanks everyone, and yes I will keep you posted on what happens.

Melanie, I had wondered about the absence of action on an Interim Order. In your experience, given that the hearing is on Tuesday, is there any way this can formally or informally be negotiated first thing on Monday if the outline facts are presented to HMRC? Is there any benefit in me contacting them to explain the situation?

You still have time to make the Interim Order application - which can be done at the same time as the hearing, but your IP will need to produce the paperwork. Personally I would get them to do the negotiating with HMRC - this is part of the function of the Nominee at the end of the day.

Just noticed that my last post has been starred out so for ***** read puss instead!!

Thanks again Melanie! To be honest I'm a little ****** off by this (to borrow your delightful way of styling these things!) Going in unrepresented when my whole professional career is in the balance is not what I'd expected - and I haven't even yet spoken to an actual IP to understand the formalities and procedure. I've given evidence to courts and parliamentary committees many times and there has ALWAYS been someone on hand before the event to explain precisely how things work. Not in this case. I'm so relieved you're here to make sense of it all

It's the forum Mel - it self censors even though some of the words shouldn't be!

I am sorry that you feel that you are being unsupported - and of course I can only really speak of the way that I would be handling a case like this. It is not too late to get legal representation for Tuesday - I could recommend a really good firm of lawyers who would do that for you for about £100 all in, and personally I feel that your case would be far better founded if you had a legal representative with you.

I am also suprised that you are yet to speak with the insolvency practitioner representing you, but of course I do not have the full facts of the case to hand. How long is it since you started the process?

Thanks Melanie. I started the process about two to three weeks ago. I've also just sent you a message separately through your webmail.

I had one credit card company trying to make me bankrupt and the debt was only £6K compared to the total of £80k owed to various people. I represented myself in court. There was only myself the judge and the solicitor for the credit card company. I explained that I was looking apply for an IVA and was given three months adjournment. The IVA was not set up within that time but I did have a date two weeks hence so the petition was adjourned again. I think you will find that as long as you are honest and to the point about your situation the judge will be well in your favour. Good Luck