Bankruptcy adjournment

[dannster]

Hi all

I have a quick question regarding a letter I need to fax to the High Court and HMRC about an adjournment for a bankruptcy.

I ran my own business (sole trader), for six years which I wound up last July. I got myself in a mess with tax and VAT and couldn't afford to make the repayments. A month ago I received a bankruptcy petition for £109,000 and the hearing's this Thursday.

For the majority of this past month I'd accepted that because I have no assets, I rent and have no job then it would be the best option for me. However, I've just got a job on a good salary and I want to avoid bankruptcy, if possible. Most importantly, I didn't submit tax returns for 2008 - 2011 so they made their own assessment based on my first years tax return. The first year tax return was quite high (around £25k), but subsequent years were nowhere near this amount, otherwise I would have had the money to pay the tax!

I spoke to HMRC yesterday and they said they may accept an IVA but I need to fax a letter to the High Court and HMRC to adjourn the hearing to allow me enough time to submit my outstanding tax returns and have the amount re-assessed, then for someone at HMRC to consider my IVA proposal.

My question is, what would I need to include in the fax? Who would I address it to for the High Court?

I'm a little nervous about getting it wrong!

Any help would be greatly appreciated

 

[Method Man]

Ideally this should be done by an insolvency solicitor but that's going to cost you some shekels.

I'd start off by ringing the Court and see what guidance they can give you. They can't give you advice but you might get lucky and speak to the one person who's helpful in the Court Service.

The other option would be for the insolvency practitioner you went to see to send an outline proposal to HMRC and ask that HMRC makes the application to Court for the adjournment.

If the insolvency practitioner is any good then they may also know a solicitor who'd be able to make the application on a "mates rates" basis or similar.

 

[wellard]

Go on to the money saving expert site / bankruptcy forum / iva forum and you will find template letter and advice there from IP's

 

[Chunkford]

I've just got a job on a good salary and I want to avoid bankruptcy, if possible.

What's the real reason to go for an IVA instead of bankruptcy?

 

[dannster]

Thanks guys

I want to go for the IVA because if they accept my proposal then I'll be able to afford the payments comfortably and still have some disposable income. If I go down the bankruptcy route then I'll lose all of my disposable income for 3 years.

I've had a look online for a template but can't find one. Would it just be a bankruptcy adjournment letter?

 

[Chunkford]

I want to go for the IVA because if they accept my proposal then I'll be able to afford the payments comfortably and still have some disposable income. If I go down the bankruptcy route then I'll lose all of my disposable income for 3 years.

IVA repayments are based on what you can afford for 5 years with annual reviews raising or lowering the amount you pay. Meaning it will be the same as if you were to go bankrupt with regards disposable income.

This site gave good advice for me, and they have a section on IVA's which is worth a read - http://www.piggybankrupt.co.uk/debt/iva-considerations.html