IVA

[MBC]

I have recently put my business into liquidation and have a couple of queries. Firstly i have a personal guarantee signed on a suppliers application for credit and have had a statutory demand, this is for £2400, i am now unemployed and offered a token gesture of £10 per month until i can sell assets to cover the debt they declined. In your experience would they file for bancrupcy for this amall amount of money or just really scary scare tactics (large national supplier.)

Secondly I am considering an IVA as the debts on bank personal guarantees and lease car agreements are circa £80k+, the problem i have is that i also have a banks personal guarantee on my brothers business which is likely to fail in due course.
Can i enter and iva even if i am unable to establish my liability in total as the PG was in both our names and he has his house and equipment of the busin as security?

please help this is making me and my family ill.

regards

[TUTTSI]

Re: IVA

Hi MBC
Welcome to Legal Beagles.

You say you had a business that is in liquidation, I am asuming there is a liquidator and that there are still some assets in the company?

You should always take the Stat demand very seriously and you must within 18 days have it set aside otherwise the next stage is bankruptcy. Whilst it is a threat it is a very serious threat. What ever you do do not ignore it.

You should also not imho make a preference offer to one creditor of £10 a month when the other creditors are also entitled to a payment.

If you go down the route of an IVA from memory you have to have a majority percentage of debtors accept your proposals. Don't forget the Revenue also have a right to their debt being a priority. You also have to be able to make a sensible proposal to clear the debt and have an IVA person to conduct the meeting which is not cheap.

You also have to consider what assets you have ie House, cars etc as the creditors will want everything.

An IVA is just as onerous as bankruptcy as you will have to declare this when applying for a bank account, credit cards etc...

Also, depending on the amount of your overall debts going the bankruptcy route is sometimes the best option.

Have a read here for all your options http://www.debthelp.org.uk/iva

I have recently put my business into liquidation and have a couple of queries. Firstly i have a personal guarantee signed on a suppliers application for credit and have had a statutory demand, this is for £2400, i am now unemployed and offered a token gesture of £10 per month until i can sell assets to cover the debt they declined. In your experience would they file for bancrupcy for this amall amount of money or just really scary scare tactics (large national supplier.)

Secondly I am considering an IVA as the debts on bank personal guarantees and lease car agreements are circa £80k+, the problem i have is that i also have a banks personal guarantee on my brothers business which is likely to fail in due course.
Can i enter and iva even if i am unable to establish my liability in total as the PG was in both our names and he has his house and equipment of the busin as security?

please help this is making me and my family ill.

regards

[SpringerSpaniel]

Re: IVA

You may want to considere getting advice from the Bankruptcy Association as well as on this board. They can arrange inexpensive legal help.

[TUTTSI]

Re: IVA

http://webarchive.nationalarchives.g.../creditors.htm

Alternatives to Bankruptcy ( I don't know all your circumstances and whether this is suitable for you) If you fit this criteria then in 12 months you are debt free. However, if you own a house and have savings, cars etc and you have more than £15k of debts then this will almost indoubedly not be suitable for you.




Debt Relief Orders - Information for creditors
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 the debtor’s circumstances have not changed, they will be freed from the debts that were included in their order.
If you are a creditor and your debt is listed as a debt in a DRO the official receiver will send you a formal notice informing you that a DRO has been made.
You can see if someone who owes you money is subject to a DRO by looking at the Electronic Individual Insolvency Register (EIIR) at http://www.insolvency.gov.uk/eiir/ .
Effect of the DRO
While the DRO is in force your debt will be subject to a moratorium. During this time you may not continue or start any legal action against the debtor for repayment of the debt owed to you, without the permission of the court.
This moratorium will normally last for one year but may sometimes be extended.
After the end of the moratorium period the debt owed to you is discharged so you may not take any action for repayment of the debt.
If the debt is a joint debt you can take action for repayment from any other joint debtor, unless they too are subject to a DRO or other insolvency process.
If the moratorium is extended, or ended early, or if the DRO is cancelled, you will be sent notice by the official receiver.
If the moratorium is ended early, or the DRO is cancelled, the debtor will no longer have the protection of the moratorium or discharge and you will be free to take action for repayment of your debt.
Lodging an objection

If you receive notice that your debt is listed in a DRO you may lodge an objection to one of three things:

• <LI style="TEXT-ALIGN: justify" class=MsoNormal>the making of the DRO; <LI style="TEXT-ALIGN: justify" class=MsoNormal>the inclusion of your debt in the DRO;
• the details of your debt specified in the DRO.

The grounds for your objection can be one or more of:

• <LI style="TEXT-ALIGN: justify" class=MsoNormal>that information supplied by the debtor, or in support of the debtor’s application, was incomplete, incorrect or misleading; <LI style="TEXT-ALIGN: justify" class=MsoNormal>that a bankruptcy order has been made against the debtor; <LI style="TEXT-ALIGN: justify" class=MsoNormal>that the debtor has made a proposal for an individual voluntary arrangement; <LI style="TEXT-ALIGN: justify" class=MsoNormal>that the official receiver should not have been satisfied that the debtor met the qualifying criteria for a DRO at the time of the application;
• there is an error in, or omission from, something listed in the DRO.

You must lodge your objection with the official receiver within 30 days of being notified of the DRO and must:

• <LI style="TEXT-ALIGN: justify" class=MsoNormal>give your full name and address and supply the name of the debtor and reference number of the DRO; <LI style="TEXT-ALIGN: justify" class=MsoNormal>specify which of the three matters you are objecting to; <LI style="TEXT-ALIGN: justify" class=MsoNormal>give details of the grounds for your objection;
• supply a clear statement of the facts and supporting evidence upon which you are basing your objection.

Reporting misconduct
Although the grounds for objecting to a DRO are quite strict, the official receiver will always consider any evidence from creditors detailing misconduct regarding the debtor’s dealings or property, or suggestions for further explanation or enquiry.
Examples of useful information would be if you have information previously unknown to the official receiver, which identifies undisclosed assets or debts, or about the debtor’s behaviour.
Examples of the type of behaviour which may result in further action being taken are:

• non-disclosure or removal of assets;
• dishonesty in obtaining credit;
• failure to keep or produce records which account for losses during the 2 years prior to the DRO;
• disposal of assets at less than their value resulting in a loss to creditors;
• payment of some creditors in preference to others;
• excessive pension contributions;
• failure to supply goods or services wholly or partly paid for, resulting in a loss to creditors;
• incurring debts (as an individual or a trader) which they had no reasonable prospect of paying;
• gambling, rash and hazardous speculation or unreasonable extravagance which has materially contributed to or increased the debt;
• neglect of business affairs which may have materially contributed to or increased the extent of the debts;
• fraud or fraudulent breach of trust;
• failure to co-operate with the official receiver.

<FONT color=#292526 face=Arial><FONT color=#292526 face=Arial><FONT color=#292526 face=Arial><FONT color=#292526 face=Arial><FONT color=#292526 face=Arial><FONT color=#292526 face=Arial><FONT color=#292526 face=Arial><FONT color=#292526 face=Arial><FONT color=#292526 face=Arial><FONT color=#292526 face=Arial><FONT color=#292526 face=Arial><FONT color=#292526 face=Arial>This list is not exhaustive. If you know of any misconduct by the debtor which you think may have contributed significantly to their insolvency, please put this in writing to the official receiver, together with copies of any supporting documentation.
VAT bad debt relief
If you are or have been registered for VAT and wish to claim VAT bad debt relief, please refer to VAT leaflet 700/18/91 “Relief from VAT on bad debts” available from HM Revenue and Customs http://www.hmrc.gov.uk/manuals/insmanual/INS12601.htm
Further information
Further information about DROs and the role of the official receiver is contained in the booklet “A Guide to Debt Relief Orders” (available in hard-copy on request).
Contact address:
The Debt Relief Order Unit
Insolvency Service
1st Floor, Cobourg House
Mayflower Street
Plymouth
PL1 1DJ

Tel: 01752 635200
Fax: 01752 635222
Email: DRO.Unit@insolvency.gsi.gov.uk

[Sapphire]

Re: IVA

Just a quick question, was your business Limited or Sole Trader ?

[MBC]

Re: IVA

a ltd company