HMRC won’t let us end our IVA

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Vicky81

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Post by Vicky81 » Thu Sep 12, 2019 4:45 pm
Hi All
Complete newbie to the forum but I desperately need some support!
Long story short -
Started our IVA in May 2013, complied fully. Year 5 asked to try and release equity in our home but couldn’t so entered into another year of payments. All done and dusted.
Thinking we’re about to end our IVA we find out At some point during our IVA, HMRC have put in a “claim” for a higher amount.
Creditors meeting held. The majority of creditors agree to let us finish the IVA as it is, apart from HMRC who make up, literally just over 25% of our outstanding debt.
I’ve been chasing our IVA provider but told we have to wait to hear from them.
So we’re in limbo. It’s not good.
Don’t know what to expect.
A extension on our IVA?
Have to start a new IVA?
Or are HMRC going to try and bankrupt us?
Has anyone been through similar or able to advise us what we might be in for?!
We’re so upset. We thought we had done everything by the book and we’re so excited to finally be coming to the end of it. :(

Foggy

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Post by Foggy » Thu Sep 12, 2019 5:26 pm
It all depends on the figures and whether HMRC can substantiate the claim. HMRC are difficult to deal with if they dig their heels in, so it is a case of treading softly I am afraid.
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

Vicky81

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Joined: Thu Sep 12, 2019 4:30 pm

Post by Vicky81 » Thu Sep 12, 2019 5:47 pm
The amount HMRC are now claiming is correct (after we’ve gone back through the paperwork).
However, what I can’t understand is
1) why this wasn’t picked up at the start of the IVA, creditors meetings etc
2) we weren’t informed that HMRC we’re putting in a higher claim so something could possibly have been sorted sooner rather then us finding out as we made, what we thought, was our final couple of payments!

Foggy

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Post by Foggy » Thu Sep 12, 2019 7:05 pm
I have to admit that this is something that I do not understand. I would have thought that it would be sensible that claims be submitted at the outset and fixed at that point. However, it seems that creditors can amend claims at any time, right up to the final claims process at the end of the arrangement. It strikes me as a fundamental flaw in the process.
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

Vicky81

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Joined: Thu Sep 12, 2019 4:30 pm

Post by Vicky81 » Fri Sep 13, 2019 7:56 am
Precisely!
It does seem very wrong. The amount should be set at the beginning of the IVA. I cannot understand how this was overlooked or not dealt with when our insolvency company were made aware.
I’m so worried at what’s to come next and that we’ve just wasted the past 6 years paying into an IVA that’s going to be null and void effectively.
I gather our insolvency practitioner is trying to work out a way forward with HMRC but it’s just not knowing what’s going to happen now.
I suppose paying in for another couple of years is the best we can hope, if that’s an option, but we’re so worried we’re either going to have to start a whole new IVA or HMRC will bankrupt us.
To think a few months ago we were so excited to start a fresh, debt free life and now we’re so anxious at an uncertain future, not knowing whether we’re going to have a house by the end of the year!
To say we’re struggling is an understatement.
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