Member Since: 17th Jun 2014
17th Jun 2014
I am in an IVA at the moment, HMRC are the main creditor. I can sell my house and pay off all creditors, however HMRC are refusing to waive statutory interest and this means that nobody will get their money in full and the IVA will fail. The IVA is in its fourth year and statutory interest is 8.5%, so over 5 years it adds 40% to the debt. In order to make this amount of money, I need house prices to increase by around 40% in the next 12 months. So the IVA will fail. This will result in the reinstating of a bankruptcy order, and with the increases in costs of bankruptcy versus IVA, the payout to creditors will be less than 50p in the £. I simply cannot understand why anyone would refuse payment in full now when it is obvious that there is no possibility of getting any more money. HMRC are turning down repayment, holding out for interest that my supervisor has told them they will never get. Taxpayers be advised, HMRC want the impossible and will turn down full repayment out of sheer spite. There cannot be any other reason.