I am considering an IVA. My debt is around £85,000. I have a LTD company but will close this down and trade as a sole trader going forward. I have around £7500 credit card debt with Barclays that will be included in the IVA as well as £14,000 VAT HMRC debt. I have two questions.
1) I have around £10,000 in income coming into my Barclays account between now and the end of March 2018. I need this for cashflow but I am worried if I apply for an IVA barclays will take some of this money if they find out. Is it likely they will find out between now, Feb 24, and end of March if I start an IVA now?
2) I am getting chased by HMRC who are threatening to send around a field agent. If I take an IVA it will take a month or two to get approved and accepted. Should I inform the organisations I owe money to that I am entering an IVA and will that stop them chasing my debt before its approved (or rejected)?
Open a seperate bank account with a bank that is not a creditor and either arrange for the funds to go there or transfer it out as soon as it goes in (hopefully Barclays won't freeze the account, but it would not be unheard of). They will be informed as soon as you sign the draft proposal.
HMRC are a difficult animal to deal with and too much notice might spur them to act before the IVA is in place as, it appears, things with them are well advanced anyway. Your IP, if pre-warned, might be able to stop any action by applying for a stay with the courts.
You really need to discuss these matters with your prospective IP, sooner rather than later. Speak to a firm with experience of dealing with the self employed / HMRC.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Visit my blog here : http://foggy.blogs.iva.co.uk/
I did post on this, but, once again, Foggys post superseded mine.
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