www.iva.co.uk

Can the inland revenue reject an IVA application?
I have debts of £70,000 including inland revenue of £50,000 +
My income, as a self-employed hairdresser will support the payments.
I have, approximately, £50,000 of equity in my home but really don't want to have to sell whilst my children are taking their degrees.

HI,

Unfortunately HMRC can, and do reject applications.

If you have not spoken to anyone yet I suggest you speak to one or two companies for advice. Vincent Bond are amongst those who will give advice free of charge initially.

I have to agree with Kallis. Speak to a couple of firms directly -- ask if they are experienced with dealing with self employed and have experience of HMRC as a creditor. Personally I would go to the small or medium sized firms, rather than the "IVA factories!".

Have a read around the forum to see who the good and the bad are.

HMRC have very strict criteria and substantial equity usually means a requirement to sell. However you can get a grace period of 3-4 years which may help with the children at university so speak to an insolvency firm who have experience of dealing with HMRC. Ask to speak to the IP or a senior manager and do not deal with a sales person or someone with no experience.

One of the big hurdles with HMRC, other than the debt, is whether all your returns have been filed. They don't normally consider an IVA proposal until all overdue returns have been filed.