We have just put an iva proposal forward formysrlf and my wife to form interlocking one, we are in business together as a partnership and joint debts of £141k with 80% as unsecured debt to the bank and HMRC so getting these two to agree is crucial. We have a mortgage of £310k with surveyor reckon quick sale for Bankruptcy would fetch £350k less fees giving creditors 2.4p in £ but with IVA this would give them 44p in £. Myself and my wife are very worried they will decline it, the business has been cut to a third of size and is ticking along nicely now and I can't see why they would put effectively 4 people out of work and receive no money, I just hope although worried I am not over optimistic they will agree.
Hi Trebor and welcome from me too. Your proposal sounds reasonable and your IP would not recommend it if they were not confident of success. Make sure there are no outstanding returns to HMRC which will improve greatly your chances of approval. Good luck.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
All returns have been in on time, we had an arrangement with them over VaT for 12months which was 3k a month and after 5 months I asked to rearrange over 12months including all paye tax and monthly payments would of been a lot less but there took 2weeks nearly to say no then were demanding £30k by fri 24th, daft thing Is they would have got there money over 12months, although a huge drain on us, but now under iva get nothing for until year 2, makes no sense
To be fair to HMRC I understand why they do not like time to pay arrangements. They cannot be sure that the money that is being paid is money that should be put away to pay the next HMRC bill. Effectively this would be 'robbing Peter to pay Peter' and in the long run the arrangement is doomed to failure.
However, an IVA is drawn up with the assistance of an Insolvency Practitioner and must show projections for future liabilities to be paid on time. In addition, if the IVA fails the debtor is made bankrupt with their own money so overall I believe HMRC are more amenable to an IVA than a DMP or a time to pay.
I suppose I should take heart from that as we have really worked hard to trim the business to a sustainable level in the current climate all we need is thumbs up on the IVA and we can get on with the future. Just wish I could click my fingers and get a decision but a few sleepless nights yet I guess.
Thanks ST75 I agree we really can take the business places but need to get the big weight removed, I swear I would have borrowed the whole lot to clear the mess up if I could of found a bank to lend but that's the current climate and I was left with no option, roll on creditors meeting 7th Oct, 2 days before wides 40th birthday so let's hope it doesn't spoil it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I wish you all the best for the 7th too, that's also two days before my daughters birthday (17th). Keep in touch with the forum to let us know how it goes. xx
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
