iva

[bateyes]

could anyone inform me if it is wise to enter into an iva, also who is the best people to contact to set up such a thing, with creditors taking legal action i think this may be my only alternative, but there are so many companies offering advice i dont know which way to go, and if these companies themselves are just a rip.
many thanks

[TUTTSI]

Re: iva

You need to seek advice from an Insolvency Practictioner and they charge and normally if your creditors agree after a formal meeting to a repayment plan they will then take there costs etc from any proceeds that they may be able to crystalise. They may also ask for upfront money to be able to start the process. Also, your accountant should be able to advise a decent firm and he/she would normally be able to advise if this is the route you should be taking.

IVA's are as onerus as bankruptcy ie you wont be able to get a loan, hold credit of any sort and have a bank account where you could go overdrawn.

Normally with an IVA you try and come to an agreement with your creditors to repay what is owed.

To be able to advise better we and or the Insolvency Parctitioner would need some more info:-
Is this a buisess debt?
What are the total of ALL your debts?
Who is the largest creditor?
Do you owe the Inland Revenue any money?
Do you own your own home and if so what is it's value and what is the current Mortgage?
Is your home home owned jointly with your partner?
Do you have any assetts ie cars, 2nd homes etc...?
Are they any debtors that owe you money?
If there are what is the likely hood of receiving payments from your debtors?
Is there any stock and if so how much could it realise?
Do you have any dependants?

Would you be able to find work and be to earn sufficient money to be able to offer to pay back your debts over a period of say 2 to 3 years.

If there are no assets whatsoever, an Insolvency Practitioner may not be interested and your only route would be to let the creditors bankrupt you.

Have a read here http://www.insolvency.gov.uk/bankrup...bankruptcy.htm this gives information on a debt order relief which is less onerus. It is worth having a read to see if you qualify.

could anyone inform me if it is wise to enter into an iva, also who is the best people to contact to set up such a thing, with creditors taking legal action i think this may be my only alternative, but there are so many companies offering advice i dont know which way to go, and if these companies themselves are just a rip.
many thanks

[bateyes]

Re: iva

hello thanks for reply
i run a business have one creditor has already taken legal action with a ccj with their solicitors costs the debt is now more than the original sum even though i have paid £2000 in installments, this debt currently stands at £5,300.00, another creditor has today issued me with a statutory demand for £2,900, i know this is chicken feed to what others owe, i just dont know what to do.
i live in rented accomodation, i have no assetts, i have a van on a private hp and nothing else, unless the tools i use for work count annd they are not worth much.
i had come to agreements myself with creditors and was paying, however my chequebook was stolen and account emptied and also had a two month period with virtually no work, this has improved but as all work done is for other businesses will take another month to get to me, obviously the two main creditors, or rather their ruthless solicitors do not take things into account, i suppose the solicitors wouldnt make any money otherwise.
anyway the situation is im in a short term fix, no available immediate funds and the legal clock ticking, my business is good enough not to allow it to be made bankrupt, debts arose from work we did not being paid and illness, however ive worked very hard to expend our customer base in the middle of this bloody recession or whatever it is and while results are slow they are positive.
so i have virtually no assetts at all, but a business that is looking promising for the future, but no immediate funds to get the creditors to back off, what can i do, what is my best plan of action
please help
many thanks

[TUTTSI]

Re: iva

Did you read the link I gave you regarding Debt Order Relief as this might suit your needs?

. Debt Relief Orders (From 6 April 2009)
What is a debt relief order (DRO)?
DROs provide debt relief, subject to some restrictions. They are suitable for people who do not own their own home, have little surplus income and assets and less than £15,000 of debt. An order lasts for 12 months. In that time creditors named on the order cannot take any action to recover their money without permission from the court. At the end of the period, if your circumstances have not changed you will be freed from the debts that were included in your order. DROs do not involve the courts. They are run by The Insolvency Service in partnership with skilled debt advisers, called approved intermediaries, who will help you apply to The Insolvency Service for a DRO.
Is a DRO likely to be suitable for me?
To apply for a DRO, you must meet certain conditions:

• You must be unable to pay your debts.
• You must owe less than £15,000.
• You can own a car to the value of £1000 but the total value of other assets must not exceed £300.
• After taking away tax, national insurance contributions and normal household expenses, your disposable income must be no more than £50 a month.
• You must be domiciled (living) in England or Wales, or at some time in the last 3 years have been living or carrying on business in England or Wales.
• You must not have been subject to another DRO within the last 6 years.
• You must not be involved in another formal insolvency procedure at the time you apply.

Further information

• I am interested in obtaining a Debt Relief Order
• I am owed money by someone with a Debt Relief Order
• Frequently Asked Questions
• Principal restrictions imposed by Debt Relief Restrictions Orders or Debt Relief Restrictions Undertakings

This might help you emmensely, but only you can evaluate the situation you find yourself in.

Also a chat to your Accountant tomorrow for his advice as well.

If you have received a stat demand you only have 18 days I believe to have this set aside. I am asuming that this has been dealt with correctly and was properly served on you. Sometimes creditors send a stat demand as a frightener but they should always be taken seriously and always set aside otherwise the next step will be bankruptcy. Is the stat demand correct in terms of amount due etc.

hello thanks for reply
i run a business have one creditor has already taken legal action with a ccj with their solicitors costs the debt is now more than the original sum even though i have paid £2000 in installments, this debt currently stands at £5,300.00, another creditor has today issued me with a statutory demand for £2,900, i know this is chicken feed to what others owe, i just dont know what to do.
i live in rented accomodation, i have no assetts, i have a van on a private hp and nothing else, unless the tools i use for work count annd they are not worth much.
i had come to agreements myself with creditors and was paying, however my chequebook was stolen and account emptied and also had a two month period with virtually no work, this has improved but as all work done is for other businesses will take another month to get to me, obviously the two main creditors, or rather their ruthless solicitors do not take things into account, i suppose the solicitors wouldnt make any money otherwise.
anyway the situation is im in a short term fix, no available immediate funds and the legal clock ticking, my business is good enough not to allow it to be made bankrupt, debts arose from work we did not being paid and illness, however ive worked very hard to expend our customer base in the middle of this bloody recession or whatever it is and while results are slow they are positive.
so i have virtually no assetts at all, but a business that is looking promising for the future, but no immediate funds to get the creditors to back off, what can i do, what is my best plan of action
please help
many thanks

[TUTTSI]

Re: iva

http://www.legalbeagles.info/forums/...ad.php?t=19592 you could also complete for your own purpose an Income and expenditure for from the link I have just given you, to see if your criterea would fit the requirements of the DRO.

[bateyes]

Re: iva

deeply grateful for your help, most very deeply appreciated.
with regard to the statutory order, this is from a supplier for materials from work, three months ago i sent them a letter quoting that i had queries on a number of their invoices, (i have experience of their manager he has a habit of charging well beyond the norm, in one employment he did it to me there and i was overcharged by £6000 which i had taken off the bill, in an earlier employment again he was sacked and had to pay back £20,000), so i have never agreed the ammount claimed, with invoices to back up my claim i am hoping this will be enough to have this set aside while i get in touch with the md of the company and offer terms to repay, i trust this will get me through.
i will look up debt relief order now
my deepest thanks

[TUTTSI]

Re: iva

You still need to get that Stat demand set aside as the clock is ticking.

deeply grateful for your help, most very deeply appreciated.
with regard to the statutory order, this is from a supplier for materials from work, three months ago i sent them a letter quoting that i had queries on a number of their invoices, (i have experience of their manager he has a habit of charging well beyond the norm, in one employment he did it to me there and i was overcharged by £6000 which i had taken off the bill, in an earlier employment again he was sacked and had to pay back £20,000), so i have never agreed the ammount claimed, with invoices to back up my claim i am hoping this will be enough to have this set aside while i get in touch with the md of the company and offer terms to repay, i trust this will get me through.
i will look up debt relief order now
my deepest thanks