www.iva.co.uk

Hi All,

First post so hope to hear so useful advice!
I'm a Director in 2 Limited Companies, both small enterprises, equal shareholder with 2 others, no staff.
Sadly we have had to shrink from 25 staff to just us, and its hit my income badly. I am now in discussions about entering an IVA. My income has stabilised and I,m told I stand a good chance of acceptance.
However I need to produce my previous tax return. Problem is this shows I earnt a lot less in the previous tax year than I have over the last year. Im talking £8000 declared income 2009-2010 as opposed to estimated £30,000 for 2010-2011. Surely this will mean that the creditors won't accept my confirmed income of £8000 can therefore meet my IVA proposed payment?

Hi themuzza - if you are working with a good IP who is used to representing self employed clients/Directors then they should be able to justify this for you. As long as your projections are correct and you have good reasons behind the difference in figures year on year you should be ok.

What has your IP said?

Regards,

Thanks for the input Tina.
My IP (who I haven't met yet) has forwarded me details of the documents I need to produce or send prior to the meeting. They haven't said anymore yet.
I can justify the increase in salary so maybe that's enough, fingers crossed.
I guess I will have to see what they say in the meeting.
Early days...be glad when it's over!

Hi themuzza,

Haven't got anything to add but good luck - I'm sure with the reasons you have already written here and a full background history about the problems with the business then your IP will work hard to find a solution.