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bigduckontax, Accountant
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I have 5 months left of a 5 year IVA,(I owe HMRC £75,000),unfortunatlley

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Hi, I have 5 months left of a 5 year IVA,(I owe HMRC £75,000),unfortunatlley ive breached my IVA by incurring more debt & the HMRC want £10,000 or they will make me bankrupt and i will loose my house, please can you advise me the best thing to do, thanks Dave.
Hello Dave, I am Keith, one of the experts on Just Anwer, I am sorry to hear of your predicament and pleased to be able to help you with your question. Not so long ago making people bankrupt was HMRC's stock in trade, but since tax debts ceased to be preferential that is no longer so remunerative for the Revenue; they have to share parri passu with all your other creditors, if any. With an IVA, as you probably realise, you do not loose your house, but you could on bankruptcy although if it is jointly owned with your spouse things become much more difficulty for Trustees in Bankruptcy. However, breaching the IVA is scarcely the best idea. You must consult local, trusted professional eg a solicitor immediately. That will cost, of course, so perhaps a quick way forward is the local Citizens' Advice Bureau who may well have a tame solicitor on tap. In the meantime negotiate with HMRC to arrange an affordable recovery regime if you can. You are in more than an element of bother and speed id essential, especially if you can't raise the 10K. Of course HMRC may be sabre rattling; par for the course. I do hope my reply has been of some assistance.
Customer: replied 2 years ago.
My wife is also part of the IVA, we are both very worried about loosing the house over £10,000.
Oh dear, the loss of the house is a danger then unless you can raise the 10K or negotiate with HMRC a more affordable recovery schedule.
Do you have any other debts, or just HMRC?
Customer: replied 2 years ago.
yes we have other debts on the IVA.
Customer: replied 2 years ago.
The other creditors were happy for the IVA to continue to Feb and then finish.
Then taking bankruptcy proceedings would merely result in you becoming homeless, possibly, and HMRC getting less than they are owed and all your debts wiped clean. What your other creditors feel is irrelevant; for an IVA all creditors must agree. I suspect that HMRC are sabre rattling,
There is another point, if you pay them 10K without making equivalent amounts as per the level of debts to your other creditors, then that constitutes a fraudulent preference, a criminal offence. It should be gently put to HMRC the illegality of their demands, not that that Department will care, but it is one up to you in the great scheme of things. Government Departments should not be encouraging criminal activity to line their own pockets. Your local paper might be interested in their antics
You must get independent advice as soon as possible as I suggested. A competent solicitor might be able to make things much easier.
Customer: replied 2 years ago.
Ok thanks for your advise, i will contact the citizens advise, if they decide to proceed with bankrupcy how long does this process take, thanks once again.
Bankruptcy is a serious matter, make no mistake. The time it takes is really as long as the proverbial piece of string depending on the complexity of the estate. However, just putting the procedure in place is relatively quick and you would have 10 days to dispute the order. Otherwise the order would become effective in 21 days.
I emphasise that you must seek independent advice immediately.
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