Hi guys,Seeking help here. Do I need to close my company or claim to be self employed ?

[Kwomu]

Hi guys,
Seeking help here. I submitted an application together with my wife. She is employed but I did state that I am unemployed. However later I was advised that my IVA might be rejected because I am unemployed. I was about to close my own company because I was self employed but felt that due to debt I needed to close the company. It sounds like it is not working my way.
Question: please advice whether I need to close the company or leave it and claim to be self employed? my worry is that I might vary my payments from time to time. Is it so?

[Adam Davies]

Hi

Are you a sole trader or a director of your company ?

Regards

[MelanieGiles]

There should be no reason why an IVA should be rejected due to the fact that your are unemployed. I am not clear, however, on your current employment status. Is the company still trading and does it derive any income for you? What are your future employment plans?

[Knob100]

I am a director of a Limited Company. I have been on a roll coaster for a while now. While submitting my proposal I was in the process of closing it down and claimed that I was unemployed. But after learning that my application might be rejected I have suspended the closure and plan to continue trading until when I get a permanent employment.
still confused!

[Knob100]

Melanie, the company derives an income but on a regular basis. Over the past three months I was able to make £4000. The future of the company looks dim though.
The IP advised that because I am unemployed the creditors might reject the notion that it is only my wife who will be working to pay off the bills and the loan. How do I go about with this?

[Michael Peoples]

We have just had an interlocking IVA approved whereby the husband had zero income and was unemployed. His wife earns a good income and he was previously self employed so not entitled to benefits.

It states in the IVA that the husband is actively seeking work and if successful the IVA will be reviewed. The payments will increase by 50% of the additional surplus income after allowing for the increased costs of working i.e travel, meals, clothing etc. The clients and the creditors [including HMRC] are happy with this proposal so I would question the advice you have been receiving.

It may be worth taking another opinion.

[Knob100]

Thanks for your insight Michael. I put it to them regarding my self employment and my future plans but they haven't come back to me yet. Let me wait for their response until the end of the week as I prepare myself to speak to another IP for another opinion.