I am down to the last two months of the original term of my IVA through Mccambridge Duffy. Their communication has been pretty poor throughout and this morning I had a bombshell in the post. I was self-employed until March 2007 and have one more SA Tax return to send in. I have been in full-time employment since then. I was under the impression that I didn't owe any money to the Inland Revenue this year as applications for redutions had been made previously by my accountant, and I have received no statements from them at all this year demanding any payment. This morning I received a letter from my new supervisor, a Mr James Green, telling me he had received a letter from the VA unit at IR that I had failed to pay post VA liability and was in breach of the terms of the arrangement Part XII paragraph 75. He issued a certificate of non-compliance dated 1st Septmeber along with the letter giving me 7 days to correct and explain the breach or face failure of the IVA and bankruptcy. Today being the 6th and the letter being franked 4th September and today being a Saturday doesn't give me much of a chance.
I immediately phoned my accountant who didn't recall a liability either bt after some digging around found that I had in fact owed £293 on January 31st 2008, although I've received no demands or statements.
I immediately made an electronic payment including interest and have faxed a letter explaining the situation to their Derry office along with a cpy of the payment.
My question is to anyone with experience, are they likely to accept that as resolution to the matter? I'll be sick as a parrot to have got this far and have them fail the arrangement after having coughed so much money into it.
Hey davedyas, welcome to the forum. I can't see them wanting to fail your IVA when you've only two months to go, that's crazy. I'm sorry though as I don't really know about the other stuff so please hang in there for one of the technical experts to advise you. Well done by the way for coming so far, I'm sure everything will be fine. X
Cheers Viki.W, yes I hope so. My accountant has since texted me and said he may have requested outstanding payments be collected via my tax code but as he's not in his office won't know until Monday. I just found the supervisor's action a bit over the top and overzealous considering they hadn't even phoned me to query it, but they've done that before regarding what they'd thought was a missed payment but turned out not to be, and said it's just their standard procedure, charming. Thanks anyway for your reply.
I am a little baffled as to why a Certificate of Non Compliance has been issued? Is that the case or have you been told that one will be issued?
If your sole breach of the arrangement proposal was the non payment of the post arrangement liability then you have remedied that breach by paying the liability. Your arrangement will continue as normal. In the next report (Which will presumably be the final report?), the IP will advise your creditors that you had been in breach of the terms but you in fact remedied the breach.
Perhaps on Monday, you can contact H M Revenue & Customs and ask them to fax an acknowledgment of receipt of the payment to you, which you can then forward to the IP.
If payments have also been collected via amendment to your tax code, then you will be entitled to a refund, though probably not until the end of the Tax year, unless they issue you an amended Tax code prior to then.
Yes I was a little shocked to receive a copy of the certificate this morning too Cybus, previously had any queries arisen I would usually get a call from the Derry office in the first instance, but this seems a bit strange and the way they've held the letter for three days before posting it to me to get it on a Saturday seems a bit harsh too. I've only paid the amount today so it won't be received for two working days anyway, but my bank statement will prove I made the payment with 7 days of the issue of the certificate. I'm a little paranoid in wondering if there could be any cynical advantage to any party in failing an IVA at this stage, i.e. bankruptcy meaning further pursual of outstanding debt after they've had the agreed amount from the IVA? Sounds hideous but this whole episode seems a little opportunist. Thanks for your reply Cybus.
Yes you would think that would be the case, but I'm a little nervous and still unsure if there could be an ulterior motive to encourage late failure like this if the opportunity arises, as it's made clear that later in the Arrnegement the Supervisor's role switches from being in the interest of the debtor to the creditor, and failing once all the monies have been taken could have advantages for the creditor, but I'm not sure what would happen to the money that has been paid in that situation.
Dave, I do hope you get this sorted. What a nightmare!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Thanks Kallis. Yes I'm currently contemplating the £15000 I've spent five years paying into this thing, along with the cut my zealous IP supervisor has taken from it..
I'm optimistic but furious they haven't made more of an effort to contact me sooner.
It does annoy me when they do this kind of thing. They really do not know or care to understand the distress and anxiety it causes. As Andy says I am sure McCambridge Duffy will not want the iVA to fail at this stage, but these standard kind of letters are a real pain.
If it's any consolation my IP was McCambridge Duffy and I had similar lack of correspondence problems with them, however, as I have recently put in another post, they did present an excellent IVA and a subsequent very successful F&F offer.
Enjoy a glass of wine Dave ... I am sure that everything wll become clearer on Monday.
Thanks yes feeling a little more chilled about it now the first glass of red is underway haha! Yes they have sent me heavy-handed letters before and later explained it's a standard letter.
Still I have slightly less steam comng out of my ears now and thanks for your reply.
I'm sure that it is so you vent anger shouting and screamin (or posting on here!) on a Saturday, and you've calmed down by the time Monday comes and you phone them!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
