£60k in debt, business about to fail

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JSmith77

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Joined: Mon Jun 01, 2020 4:56 pm

Post by JSmith77 » Mon Jun 01, 2020 5:02 pm
Hello everyone

I have a strange situation.

Basically I sold my assets and put the money into a family business - my father's sole trader company, which has been a disaster. Although we were going to sell it still at a breakeven/profit pre-coronavirus, this has now totally collapsed and it's looking like I will have £0 back and be lumbered with an unpaid £25k tax bill to HMRC and £40k on credit cards. I have not been taking income from the business, but being paid back by my father from the loans, so it looks as though on my bank statements I have had "income".

I am now looking for another job and may have one lined up around £40k a year.

So two issues:
1) is it worth doing IVA with this amount of debt?
2) what issues should I be concerned about with my bank statements showing money coming in from my father's business account over the last couple of years? I gave him lots of cash and he was returning it to me for my living expenses and paying off my minimum credit card payments etc.

Thanks

Foggy

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Post by Foggy » Mon Jun 01, 2020 5:47 pm
It is certainly worth having a chat with an insolvency practioner (IP) about your situation, as there are many other things to bring into the equation. Chat with a couple, at least, to compare advice.

Money your dad has been paying in the past is not really relevant as this source has dried up, or will very soon.

The credit cards, in your name, will be simple to deal with and are certainlt at a level where an IVA might be appropriate. However, the HMRC debt would, surely, be in your dad's name as he is a sole trader and, as such, would not be rolled into your debt solution.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

JSmith77

Posts: 2
Joined: Mon Jun 01, 2020 4:56 pm

Post by JSmith77 » Mon Jun 01, 2020 7:48 pm
Mon Jun 01, 2020 5:47 pmFoggy wrote:
It is certainly worth having a chat with an insolvency practioner (IP) about your situation, as there are many other things to bring into the equation. Chat with a couple, at least, to compare advice.

Money your dad has been paying in the past is not really relevant as this source has dried up, or will very soon.

The credit cards, in your name, will be simple to deal with and are certainlt at a level where an IVA might be appropriate. However, the HMRC debt would, surely, be in your dad's name as he is a sole trader and, as such, would not be rolled into your debt solution.
Thanks, the HMRC debt is because I sold assets, had CGT due, and have only paid half as I had put it into the the business, with the intention that we would be able to sell the business within 6 months and pay the CGT in time - but it's now 18 months later and he has not paid me back.
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