www.iva.co.uk

Hello everyone, need some help with the situation I now find myself in. Lots of questions, please help if you can!!

Both my wife and I are currently filing for bankruptcy in our local court, the date has been set for the 12th November, 6 days to go.
we recently ran a sucessfull business but due to a fire in April of this year and a crap insurance company we find ourselves in this situation.
Since the fire we have been both very depressed knowing that there would be no way out of our pedicament other than bankruptcy which involves loosing our house etc..., so because of this we've really had our heads in the sand.

We need some sound advice and help?

We entered into an IVA at the beginning of April of this year, and the fire happened two weeks later. Consequently although we've both found employment we could not afford the IVA payment. Our IP informed us that the IVA had failed and now we face bankruptcy.
We are frightened to death and would like advice on the following

1. We have not filed a tax return for Income tax or Vat for 2006/7, this is because our Accountant is now one of our creditors and we cant afford to pay him. Our record keeping hasn't been bad and we have basic accounts. What will the OR make of this?.
2. As both my wife and I are filing for bankruptcy do we need to list the same creditors on both of our forms as we are both liable.
3. Some of our debt goes back quite a few years and the correspondance that we had for them ie account nos etc we passed onto our IP when we first took out the IVA. We do not have this info anymore only the name of the Creditor and the amount we owe. The online insolvency form asks for dates and times etc.. how do we proceed. I know the obvious is to contact each creditor and to get the information of them, but to be honest I dont want them to start hassling me over payment.

Any ideas ?

Probably will have more questions when I start going through the forms

Hi Culedude

Dealin with your three queries in turn:-

1 This will not matter - just explain to the OR why the returns are late.
2 You will need to list joint liabilities on both applications as you are both jointly and severally liable for all of the joint debts.
3 The OR can get this information from your IP, so just fill them out to the best of your ability before taking them to Court.

Good luck!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Hi Culedude

Welcome and sorry about your situation.

I act for a number of businesses similar to yours as an accountant so I can help a bit but Melanie and others who are specialists will also give some advice.

As for the Income Tax and VAT returns which are outstanding these will need to be completed and filed. Basically, HM Revenue & Customs will be happy if you can give them some idea of the figures and if you need any help just let me know. As an accountant we do face hardship cases and it might be if you spoke to him your existing accountant might still help you if you explain the situation. If not then perhaps Andy the administartor might be kind to let you have my e mail address and I could at least help you as to what you need to do!

Secondly, everyone forgets this point and I am surprised your accountant hasn't picked this up and the business has suffered a loss so what has happened to the loss and the affect it might have on any tax liability arising! There may also be a VAT loss as well and that is an area that needs to be explored.

The OR will need this information anyway.

2. I suspect yes although you may have seperate debts as well.

3. Sounds stupid but did you not keep copies of what you sent to your IP and another area to look at a copy of the court documents which you had when the IVA was entered into the court. If you have the case numbers then you might be able to get a copy from the court for a small charge.

Once you have this then you will be able to complete the missing pictures of the jig saw and move on with explaining the sitaution to the OR.

Personally, I think the OR will be symapthetic to your situation.

Hope this helps and Good Luck!

Sorry whilst I was writing Melanie was replying but my main concern here is just how much is owed to the HM Revenue & Customs and it may be that there are losses that we can recover!

Thanks Melanie and Ray for your advice, I have contacted a local accountant and explained the situation regarding Tax etc, got a meeting with him tommorrow, still dont know how I'll pay him but may have to ask family to help us out on that one,
Let you know how I get on!!
I have read through possibly most of the postings dealing with bankruptcy and the help that is given free of charge, just to know that we aren't the only ones going through this is a big help in itself. Cheers

Pleased that we can help!

I am glad you are talking to someone about the tax issue and generally we are sympathetic. Explain your situation and try and get him to do it on a fixed fee basis so that you will know what your cost will be.

If you need any help just come back!

Take care and good luck!