How to exlain the IVA and shame. I need to talk.

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MR Bee

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Post by MR Bee » Mon Jun 21, 2021 4:49 pm
Hi guys.
Context of my debt.
7yrs ago with £10k credit cards and loans. Basically addiction and depression.
I took a better paid self employed job.
But didt understand the red tape, some bad advice and i spent the first years buisness tax on a holiday.
So i was always chasing more debt
I hadnt addressed my means.
I was on a fortune and doing well.
It fuelled my addictions.
I started to turn the corner.
Beat my addictions
Then nearly three years ago. At xmas.
My self employed buisness went under due to losing the contract. (govt cut the funding) 1 weeks notice.
I hadnt enough money to pay the full orporation tax, personal tax. Coming
And had to spread money to keep kids fed. I was ashamed i hid the issue, and bagged me a new job within a week but it started jan 2019. With pay in feb my wage had dropped to 50% of last 10years.
So i budgetted till then and my last week i had to pinch apples and drink out of date protein shakes. For the last week.
But my kids had enough to eat

Got the iva in march 2019.
That job was awefull workng away with an iva budget. Ended up getting assaulted for a work related issue and fell back into addictions while away, was under etreme pressure and on a few ocasions blacked out and collapsed.
i left that job in the summer of 2019, bagged a job near home. And been workung away ever since happy and doing well.
Ive opened up about it to my close friends. Beat the addictions.
Im now off alcohol and dry.
Last week. Again it looks like my department is getting outsourced.

Made a few calls and Within a day i get an interview with another company. (im niche market and well respected)
And need to fill out forms.
The dreaded IVA qestion is there.
Ive had a full blown panic attack.
I cant put no
But if it comes out in the interview.
Ill breakdown.

How do you explain it.
Im managing now, but made mistakes in the past.
Hardly gives confidence does it.

MR Bee

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Joined: Mon Jun 21, 2021 4:20 pm

Post by MR Bee » Mon Jun 21, 2021 5:02 pm
Ive opened up to my friends in last few months.
And only now typed this for the second time.
The iva company knows the truth.

Just before i lost the job that triggerred the iva,
I had started the gym, lost 4stone.
Started living clean life.
So i know i can sort myself.

Anyway thanks for reading

Foggy

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Post by Foggy » Mon Jun 21, 2021 5:34 pm
It has been a tough old road -- but well done on getting this far !!!

You ask how to explain yourself at the interview --- and then provide your own answer in the last few words of your first post: " I'm managing now, but made mistakes in the past. "

You have been in this IVA now for two years --- you are getting there and you are beating it !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014

luluj

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Post by luluj » Fri Jun 25, 2021 6:55 pm
You have done the hardest thing... asking for help. You have been through so much and you will get through this period of time too.
Your are almost halfway in your iva journey ... 50% of the way .. be proud of the journey you are on x
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

Look at my blog "All I wanted was a baby"

MR Bee

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Joined: Mon Jun 21, 2021 4:20 pm

Post by MR Bee » Sat Sep 11, 2021 6:53 am
Thanks all, had the interview, the question never came up. Waiting for a reply. Still dry, losing weight.

Had a few outgoings this month, car breakdown, was £600 two weeks ago. Im Paying it monthly, but still had to stump up £200 upfront. So my budgets been hit by £100 extra.

£30 to stretch through this week on food family of 4.
Cars off the road as i dont have petrol money. Managed to plan all work from home. Then the energy bill drops.
Because my windows have failed it got very cold last winter, they are doubling my energy bill. Up by £150.

Ive written to them to say hold on and queried it.
Also to iva practitioner.
Asking for help to repair the two windows.
as technically it should reduce the heating requirements.

Next month i wont be eating.

Foggy

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Post by Foggy » Sat Sep 11, 2021 8:50 am
Fingers crossed for the job. Well done on staying dry AND still losing weight !

If and when you get unexpected bills you do have the option to ask your IP for a payment break ( which will get added back on at the end of the term ) . This can only be done a limited number of times and at the IPs discretion, so don't use up the 'lifeline' needlessly.

Windows and heating: Have you applied to your energy supplier for the Warm Home Discount ? Not a fortune but, if you qualify, they can knock £140 off your winter bill. Do you have double glazing ? My DG is as old as the hills and I looked at getting new windows ---- £6000 !! No way !! So, I had them serviced ..... new gaskets and storm seals and the hinges and handles cleaned and adjusted for £400. They are like new windows !!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014

MR Bee

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Joined: Mon Jun 21, 2021 4:20 pm

Post by MR Bee » Sat Sep 11, 2021 2:11 pm
Yeah im thinking servicing will be beneficial. Even if not fully successful its better than nothing. Its only 2 windows.


Ive emailed my iva practitioner.
To ask for help. Hopefully they will let me take a month reduction to cover this bill.

The lady from my supplier was helpful.
Shes giving me an extra month to resolve.
Ive offered to rebalance my monthly payment
so my deficit isnt getting worse.
This would let me shop around
And get it cheaper. Maybe.

Got to stay positive.
Im 3 years in on march 22.

Ill have paid off a massive glut of the debt. Which makes me feel soo much better.
Cant believe how being alcohol free gives a more positive mindset.
15 years ago id have got smashed and just took another online consolidation loan. Bought aload of shit.
And frittered it away on expensive needles things.

Foggy

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Post by Foggy » Sat Sep 11, 2021 3:12 pm
Yes. An IVA isn't as simple as some think it might be. But it certainly helps put you back on track !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014

MR Bee

Posts: 15
Joined: Mon Jun 21, 2021 4:20 pm

Post by MR Bee » Fri Mar 25, 2022 11:49 am
Well might aswell follow on from the journey.

Still in same job department didnt get outsourced, i git promoted upped the IVA.
2 YEARS TO GO
But a letter came today from the insolvency practitioner.

My company cant close because i owe it debt.
Its incurring costs.
£10k in last year chasing my old employees apparantly. Even though there wasnt any.
They charge £250/hour.
So they want to reset the cap to £25k
Even though the iva was always 5 years.

I cant understand this, because now alot if my debts been consolidated to 1 firm.
Can this cancell my iva?
Up the duration etc.
How can debts rise?

MR Bee

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Joined: Mon Jun 21, 2021 4:20 pm

Post by MR Bee » Fri Mar 25, 2022 12:15 pm
Oh ive read more, this is a vote to allow the shareholders and creditors to vote to allow them to raise it by 10k

Foggy

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Post by Foggy » Fri Mar 25, 2022 12:22 pm
Sorry, Mr Bee, but I do not understand this letter from your IP --- are they saying that you owe ex employees money and they have been trying to track them down ? If so, and, as you say, there were no such employees, your IP seems to be spending money on a fool's errand ( possibly to inflate their fees).

I would ask your IP directly to explain this situation more clearly and possibly complain to his regulatory body if you get no joy.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014

MR Bee

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Joined: Mon Jun 21, 2021 4:20 pm

Post by MR Bee » Fri Mar 25, 2022 2:35 pm
Yes they say they need an extra 10k to complete my books and monitor the other outgoings of the buisness.
It was a self employed buisness where i provided engineering services to a single contractor outside of IR35.

As soon as that contract was terminated.
Money ceased to go in or out and i ceased trading. In jan 19
I entered the IVA with the Insolvency practitioner workung together.in march 19 they had everything.
5 years of bank accounts and statements from my accountants
It was all professiinally compiled.

Theyre now saying the cap on 16k is unfair and want it lifted because of chasing employees, and sorting through the papers. Which is bollox. Theres nothing new, they get a fixed fee every year they should have calculated that properly
Instead they came after all my wages for 5 years to recover back to the buisness.

I dont get it, its costing them £10k to keep the buisness open for £5k debt
I thought it was liquidated.
It would make more sense to close the buisness and ask for the 5k to be a debt direct to them.

They are asking for a revote on the cap by non creditors.
Sounds like they want the iva terminated.
To come after the house which is worth 50k and ive no other assets.
Im waiting for the iva practitioner.
Because if i vote no. Who else can vote on the buisness. Its all confusing.

If we raise the cap it triggers the iva for a revote. And then theres only them. And the other debt company thats bought my other debts to vote on.

MR Bee

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Joined: Mon Jun 21, 2021 4:20 pm

Post by MR Bee » Sat Mar 26, 2022 4:48 am
Ahh ok Foggy
Im struggling too,
My iva is handled through my IP theyre asking for the letters as they have not recieved anything.

This letter is from another insolvency practitioner on my liquidated buisness.

They want to raise my debt with them to £25k from 16k (£6k debt £10k fees)
Over additional costs like chasing x employees which there was none.
State of the books (compiled by an professional accountant)
And 5 years of my personal and buisness account details.
Its not as if it was complicated.
Each month i took 66% out of buisness as a dividend and 33% was paid corporate tax.(accountants advice)
The liquidators wanted the dividends. 5 years worth.

This was voted on by a group of people and the liquidators got told no.
The liquidators (now 2 of them) are asking for a revote to open the vote to others to raise to 25k.
Again, if this happens.
Whats to stop them to come back after 5 years of dividends which were rightfully and legally given to me as it was all done openly.

I mean the max they will ever get is £50k
With the house sale.
And even then when its all dividied out to the other creditors or whatever theyre called.
% wise, theyd get £5k, so they would get less if they push this bollocks.

Id be homeless, carless, jobless and most likely familyless and just an oxygen thief. I mght as well go live in a box.
I made a mistake, im owning that mistake, ive not once tried to be dishonest. What these liquidators are doing is dishonest. £250/hour.

All because i misunderstood corporate tax. And my accountant said.
The moneys yours, do what you want with it.
Back then, i was in a terrible place mentally. I should never have jumped into contracting. I didnt understand it then, and i dont understand it now.
I struggle with written instructions.
Reading comprehension isnt great

Foggy

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Post by Foggy » Sat Mar 26, 2022 10:33 am
Your IVA has been proposed, voted on and accepted. You cannot be forced to change it, but the addition of additional debt can tip it over and fail it. That relates to your personal debt. It sounds like you were trading as a limited company. In that case the company debt has a life of it's own and has to be dealt with separately.

It sounds bizarre, but, it looks like you (as an individual) owe yourself (as the company) money! The liquidators might be inflating their costs unduly and it is up to your IP whether these new costs can be accepted. If your IP decided that they CAN be accepted, the choice is to go for the changes or allow the IVA to fail.

I would strongly suggest that you make an appointment with your local Citizen's Advice Bureau debt advisor, to sit down, with all the paperwork and explore your options.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014

MR Bee

Posts: 15
Joined: Mon Jun 21, 2021 4:20 pm

Post by MR Bee » Sat Mar 26, 2022 5:02 pm
Thanks, ill try and make an appointment.
Its just never ending.

Ip has already told them no on previous attempt.

Again its the cap they want lifted which is part of my iva.
In my opinion the additional 10k is unjust
As the agreements not changed.

I dont understand how?

Looks like ill be starting again doesnt it.

What happens when an iva fails?
Bankrupcy, homeless, job loss?
I will lose my job again.
Its a long time until monday.
Sorry i just dont see anyway out
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