I'm self employed and business is not good

Get expert opinion. This is the place for new questions to be posted.
6 posts Page 1 of 1
Redmanstu1962
Posts: 2
by Redmanstu1962 » Thu Aug 03, 2017 4:01 pm
Hi I have an Iva. I have £14000 left to pay which I am finding very hard to keep up, missed a few payments . I have pension that I can cash in. Value £13000. How much should I offer my Iva to to pay it off? I'm self employed and business is not good
User avatar
Foggy
Forum Expert
Posts: 23882
Contact
by Foggy » Thu Aug 03, 2017 4:15 pm
Unless pension proceeds were specifically excluded in your proposal the creditors will be entitled to the full amount you draw and the IVA will continue until such time as you pay the full original debt, plus fees and possible statutory interest or it comes to full term.

You could get around this by offering to draw the pension for the purposes of a full and final -- if they refuse, you don't draw anything down and the IVA continues as before.

You say you have £14k left in IVA payments --- what time is left ? The longer the time saved (therefore administration costs) the more you could deduct.
Redmanstu1962
Posts: 2
by Redmanstu1962 » Thu Aug 03, 2017 4:34 pm
Hi I have five years left surly if my busness is not doing well and their is a chance it could fail they would except a resnable to finish it
User avatar
Foggy
Forum Expert
Posts: 23882
Contact
by Foggy » Thu Aug 03, 2017 5:01 pm
Redmanstu1962 wrote:
Hi I have five years left surly if my busness is not doing well and their is a chance it could fail they would except a resnable to finish it


You can never guess what creditors will accept -- I have seen low offers accepted and high ones refused. I would go in with an offer of £10k. Maybe an Industry Expert come along and will better guide you tomorrow.
User avatar
Michael Peoples
Industry Expert
Posts: 15188
Contact
by Michael Peoples » Fri Aug 04, 2017 8:33 am
Creditors may well accept a settlement and if you can raise £13k they would probably accept less than the full amount as there may be tax to pay and you may need some of the funds. However creditors [especially HMRC] may question the whole IVA if it is already in trouble and with missed payments almost from the start they could seek bankruptcy. If HMRC are not a creditor you have a better chance of settling.
User avatar
Lisa Thomas
Industry Expert
Posts: 5996
Contact
by Lisa Thomas » Tue Aug 08, 2017 11:32 am
How long have you been in the IVA? If you have 5 years left I presume you haven't been in it for very long?
6 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 18 guests