www.iva.co.uk

Hi there,

I have been in a Debt Management Plan for a year now paying £475 pcm on what was a £55K debt(now £50k). I have considered an IVA before as I am company director and don;t want to lose my business.

Would it be advisable to go for an IVA instead?

My issue is that my monthly pay from my business is never regular and can range from a few hundred to around £2000 pcm. However, my annual salary on my company accounts states around £16,000. Would the IP go off this figure?

Does the IP need to regularly check my company accounts or do they just need to see my personal accounts?

I am also considering transfering ownership of my business to someone else and then becoming bankrupt. My business currently has a lot of debt and, according to my accountant, can only be sold for practically nothing.

Would anyone recommend this as an option?

I look forward to hearing from you.

Thanks

Paul

Hi Paul

The choice as to whether to stay with the DMP, offer an IVA or declare yourself bankruptcy ought to be pretty dependent upon whether there is a desire to see your creditors paid or whether it is better to walk away from the debts and start again afresh.

I suggest that you take advice directly from an insolvency practitioner, as you clearly have issues relating to your business which require careful consideration. In an IVA I always build in a little more flexibility for my self-employed clients, but an IP will need to review your company accounts to ensure that you are paying as much as you can afford to, and are not building up unecessary reserves at your creditors expense.

Hi Melanie,

Thank you for such a prompt response! Especially given the time!

I would certainly like to take advice from an IP very soon.

I have no issue with going Bankrupt apart from the fact that it seems you still have to pay off your debts after being discharged from bankruptcy in the form of an Income Payment Order. I believe this is based on what you can afford per month much like an IVA. Are there any benefits to going Bankrupt then?

Would you therefore suggest going for an IVA thus keeping my business or would you recommend speaking to an IP directly? Would you be able to offer that service?

Thanks Melanie.

Paul

Hey Paul, I recommend that you give Melanie a call this week to discuss your options. You can get her contact details from the meet the experts page. Good luck and let us know how it all goes. Viki X

i would get in touch with melanie also.. she is brilliant!!

paulgm_2000 wrote:

Are there any benefits to going Bankrupt then?

There are pros and cons on both IVA's and going BR you might get a good idea of them from here http://www.iva.co.uk/guide_pros_and_cons.asp

If you own a business and your a director, I don't think BR is a option, a expert may be able to advise further

If you are not bothered about the ramifications of bankruptcy - ie not being able to act as a company director, having your details advertised in the local press and having all of your assets vest in a Trustee, then this is definately the quickest and probably cheaper option for you, but as I said it all depends upon whether you want to pay back your creditors or not.

I would be happy to have a chat with you about this, if you feel that this would be beneficial.

Hi Paul

Have a chat with Melanie as you will get honest, ptofessional advice and then you can weigh up your options.

Very best of luck
Emma x

hi paul

like others have said, it would do no harm giving melanie a call as she will explain your options in detail to you. she will give you honest, non judgemental advise. she is our ip along with a lot of other members on here, and i think i can safely say on behalf of us all that she is a true professional!

give her a call you have nothing to lose!

barb x

Hi again,

Thank you all for your advice.

I am not concerned about the stigma attached to bankruptcy and as I was not at fault for being in debt in the first place(business foldling) then I don't have an issue not paying my creditors. However, it will mean passing on my Limited business to someone else.

I would like to speak to you this week melanie if possible. Where can I find your details?

Many thanks

Paul

Hey Paul, you can find Melanie's details on the "meet the experts" page on the home page of the forum. Good luck, let us know how you get on. Viki X

good luck paul and as vicki says let us know how you get on!

barb x

Hi everyone,

I have setup a chat with Tina who works along side Melanie for tommorow evening. I have also arranged to speak with my company accountant who will advise on the best option i.e. bankruptcy or IVA.

My main concern with an IVA is that once I begin to develop my company further(which is planned) as soon as I make any more profit it will have to go directly into the IVA payment? Thus, any effort I put in to my business would be useless?

I don;t currently use a personal bank account(as have no switch card) and make all my personal purchases through my company account instead. I imagine it will difficult to prove my expenditure and income too?

Thanks everyone. I will keep you all posted on my progress.

Hello again,

I have now submitted all my budget details to Tina who works with Melanie Giles and waiting to hear back. Apparently Melanie is on holiday(fully deserved!) so will have to wait a week or so.

I am looking to put forward an offer of around £325 pcm on outstanding debts of £50,000. I have been informed this is around 29p in the pound and a total including fees of £19,500.

There is a SLIGHT possibility that one of my friends maybe willing to put up around £15K as a loan to get me out of debt for good. However, this won't be for around 6-8 months at the earliest.

Hopefully, by then I will of paid off 6 monthly payments(£1950) and would look to make a full and final settlement offer to my creditors.

Can someone inform me how much the IP fees are and what would be a reasonable settlement figure? Would £15k be enough?

Many thanks,

Paul

hi paul

glad you have got the ball rolling1

i am not a expert so could not advise you on fees etc but hopefully someone will be along shortly!

barb x