IVA - Little Known Government Legislation - Well that is what they say on the increasing number of adverts on television.
For the last few years that I was in the Inland Revenue I was involved in dealing with bankruptcies, liquidation and other insolvencies. I left over 6 years ago, so am sure there have been many changes since then.
As usual there two ways at looking at these adverts. I felt that if you had no money you had the worst help, if there was some money but did not know how to work the system, would be badly treated and I even felt the creditors did not do well out of it, if £2,000 available the fees from the Insolvency Practitioner would be more than that or if £10,000 the fees would be over £8,000. There was even a case where the insolvent person had a creditor, who was paying back £150 per month, so the Practitioner kept the case open to receive these funds, but also added there would be nothing available for creditors.
If you knew the system and could pay a few thousand to the Insolvency Practitioner for the initial work, they would be able to bid for the assets at a price, true low, but also true, the original owner of the business would place more value in the assets than others. In the case of professionals very often IVA's would be sorted out, they always claimed the bankruptcy costs would give more to creditors with an IVA, of course there is also the 5 years of payments in to the fund.
I feel it is good that the IVAs are not now limited to a small number of people. The downside being that if you have just spent more than you earn, should this be encouraged. After all if you do not pay what you owe, others have to, hence the Banks wanting to charge for more services. If you have been borrowing responsibly, but say lose a job or become ill, I feel help should be there. With everything something is set-up to help others take advantage. Like the accident compensation, where people have serious injuries need money to keep them going, industrial decease which can disable or kill, the time has been reduced. Them people who fall over take advantage of the system. Ian
For the last few years that I was in the Inland Revenue I was involved in dealing with bankruptcies, liquidation and other insolvencies. I left over 6 years ago, so am sure there have been many changes since then.
As usual there two ways at looking at these adverts. I felt that if you had no money you had the worst help, if there was some money but did not know how to work the system, would be badly treated and I even felt the creditors did not do well out of it, if £2,000 available the fees from the Insolvency Practitioner would be more than that or if £10,000 the fees would be over £8,000. There was even a case where the insolvent person had a creditor, who was paying back £150 per month, so the Practitioner kept the case open to receive these funds, but also added there would be nothing available for creditors.
If you knew the system and could pay a few thousand to the Insolvency Practitioner for the initial work, they would be able to bid for the assets at a price, true low, but also true, the original owner of the business would place more value in the assets than others. In the case of professionals very often IVA's would be sorted out, they always claimed the bankruptcy costs would give more to creditors with an IVA, of course there is also the 5 years of payments in to the fund.
I feel it is good that the IVAs are not now limited to a small number of people. The downside being that if you have just spent more than you earn, should this be encouraged. After all if you do not pay what you owe, others have to, hence the Banks wanting to charge for more services. If you have been borrowing responsibly, but say lose a job or become ill, I feel help should be there. With everything something is set-up to help others take advantage. Like the accident compensation, where people have serious injuries need money to keep them going, industrial decease which can disable or kill, the time has been reduced. Them people who fall over take advantage of the system. Ian
1 comments:
Interesting to know.
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