Author Topic: In iva, but bankruptcy looking likely  (Read 16037 times)

Susan.t

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In iva, but bankruptcy looking likely
« on: Jun 03, 2014, 08:34:50 PM »
Hi, this is my first post on here and any advice greatly appreciated. When my business failed 3 years ago I decided after much consideration to take out an iva. My debts totalled nearly £80k with the vast majority of them being for business rates on a retail unit that I had been wrongly billed for and were backdated to the sum of 70k over 3 years. I closed my shop down even though I had 3 years left on the lease as I was losing money on a daily basis. The shopping centre decided not to pursue me for the remaining rent as they knew I had no assets and they have since gone into administration. I included all the business rates at that time into the iva, however I have since received rates bill for the following years of the lease, after doing research I have discovered that I am liable for half the rates payable even if the unit is vacant as my name is on the lease. I had absolutely no idea that this would even be an issue as I am longer in the unit. I rang my iva company at the time of the first post iva bill which was rsm tenon, they told me to send the paperwork in which I did, and any following bills I have forwarded to my new company, grant Thornton. . I then received a letter from my supervisor which informed me that this debt cannot be included in the iva. And today I received 3 separate final demand payment letters.  I honestly had no idea I would be billed for these rates when I set up my iva and I don't know what to do. Most of the dividend from my iva is already going to land and property services for the previous bills. As they are billing me for approx £17k each year, I clearly would have no way of paying this and therefore it is looking likely that I am going to be forced to file for bankruptcy if they are going to continue asking me to pay this money. This is not a route I want to go down as I am now into the 3rd year of the iva. I am just unsure what steps to take next and am asking for any advice you could give.


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Smiff

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Re: In iva, but bankruptcy looking likely
« Reply #1 on: Aug 12, 2014, 05:04:40 PM »
Have you ever thought of getting professional advice from the likes of de-debt.co.uk ?  My friend was having issues, we did some searching, filled a quick form and he was called back and they sorted his issues out with a repayment plan I think.  This was great as it took all the hassle of debt collectors etc off his back.

alastair swanwick

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Re: In iva, but bankruptcy looking likely
« Reply #2 on: Aug 25, 2014, 05:27:16 PM »
you can get professional help for this

Richard Stockburn

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Re: In iva, but bankruptcy looking likely
« Reply #3 on: Sep 01, 2014, 04:25:06 PM »
Hi Susan

My name is Richard Stockburn and I work for bankruptcy.co.uk as an insolvency specialist.

Bearing in mind that the objective of any IVA is to protect assets that would otherwise be lost in bankruptcy (houses with equity, stock portfolios, expensive cars, etc.) bankruptcy may well be the best way forward. All debts past, present and future (provided the actual debt was incurred prior to the bankruptcy) would be included and the worry associated with the rates demands would be a thing of the past.
People naturally shy away from bankruptcy, but it is definitely no worse than an IVA and only lasts for 12 months - If you look at the Insolvency Register, all persons in either an IVA or Bankruptcy all appear on the same page! Provided you do not have any significant assets, you have nothing to lose.
The key factor when making an assessment is whether you would be expected to make a monthly contribution - called an Income Payments Agreement - once you are made bankrupt. In many cases, people exiting an IVA in favour of Bankruptcy are not required to make a monthly payment or, at worse, a greatly reduced one. I would be able to assess this after a quick chat about your income and expenditure.

Give me a call if interested on 07894481175 or 01425 600129