Providing that the company keeping the case open does not drag their feet and take an excessive time over the claim paperwork or closure post claim being processed then yes I agree criticsm would be unjustified. The actual situation is still a hurdle most debtors would prefer not to have suffered.
Not good nepensioner. Some people do wish to close a chapter on their life and move on. Hopefully this will all resolve itself very soon and things go back to normal
PPI - the right to a PPI reclaim (depending upon the wording of the individual proposals) is that a claim may only be made if there is a genuine claim for mis-selling which then has to be proven. If there is, then this will form an asset of the IVA and understandably an IVA cannot be closed whilst the IP has assets to collect. Those IP firms who are actively pursuing PPI reclaims are therefore not doing anything wrong - and they may be actually be doing a better job than those of us who take merely a passing interest but support our clients who have bothered to make claims - however they should not be bullying clients into making false claims or threatening that cases will not be closed in the absence of an agreement to claim.
With regard to the VAT issue, Counsel's opinion which was issued only last week makes it clear that closing cases remains at the discretion of the IP - as does the actual submission of a VAT reclaim in the first place. I am currently reviewing things in my own practice as a result of this opinion, but can say that this is likely to affect the larger firms more than perhaps it affects smaller, more specialist firms.
Please don't beat up your IP if they cannot close your case. None of us wanted to see this VAT decision - indeed it is affecting our own cashflow quite considerably at present at a time when we have been squeezed far too much. We don't make the rules, but have to carry them out at the end of the day. The main issue would appear to be whether windfall payments would still be payable into the IVA once the natural ending of 60 months (or whichever timeline is relevant to the case) has expired. My guess is that they would not be captured under the IVA, but again this would need to be considered from a legal and contractual angle if an when it arose. Certainly under bankruptcy proceedings, no action can be taken to collect such assets after discharge, and I would see the Court applying the same policy with a completed IVA. It will be many months before the VAT issue is fully resolved in my opinion - and we all do have to move on at the same time.
I hope it is sorted before mine is ready to be closed!!!
Mel - would this be the same if you offered a full and final at any point?
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
I am doing this on a weekly basis, emails as well as phone calls. Most of my emails get ignored and when I call im given a different excuse. First it was the PPI - solicitors are taking a while to come back to them - and now it's the issue of VAT.
I would feel less irritated by it all if they were professional and kept me in the loop and did not ignore me!
I appreciate it is frustrating that you have not received effective communication from us regarding the VAT issue. Part of the problem lies with the confusion and lack of advice from our regulators on how to proceed and part does indeed lie with the IVA companies (VN included) as we have been too slow to inform clients of these issues. I am sending an update out to all VN clients who are in the completion process (or coming up to that point) to inform them of the VAT issue and the potential delay so hopefully that will at least mean VN customers are informed going forward. I would also like to apologise for the lack of communication that you have received so far.
Please note we are not taking our time with your closure, it is that we are unable to progress your IVA case further until we have received the VAT refund from HMRC. Unfortunately we have no definite date when that will occur. I will be sending regular updates out to VN clients going forward regarding this so you will be kept fully up to date.
I should think this will take months to resolve as, like my department, HMRC have lost so many staff there is probably a backlog of work.
I wondered what VN's opinion was if a debtor who had fulfilled their obligation in 'completing their IVA'. finds they have now inherited money, or won the lottery. Would they be expected to pay this over or is it theirs to keep as the situation is out of their control?
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by kazzafunk
Hi Gareth,
I should think this will take months to resolve as, like my department, HMRC have lost so many staff there is probably a backlog of work.
I wondered what VN's opinion was if a debtor who had fulfilled their obligation in 'completing their IVA'. finds they have now inherited money, or won the lottery. Would they be expected to pay this over or is it theirs to keep as the situation is out of their control?
I think before much longer there will be a test case in the courts where someone will argue that having complied with all the conditions laid down in their IVA,its the IP/HMRC/PPi reclaim firm etc etc holding things up that has caused them to lose a windfall.
It should not take 6 months plus to close an IVA,end of story,no excuse,especially as many firms are closing cases as normal!!
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I asked that very question KAzzaFunk to the office manager at my IVA company and he has said that it would be down to the discretion of the supervisor as a windfall when your IVA should have completed is not fair to include in some circumstances but in others it is suitable. He was a bit bague and I think the answer is no-bodies safe until they get that completion certificate
As this seems to be a universal problem, I don't see why the regulators cannot, between them, come up with a new protocol which constitutes a "substantive compliance with the terms of the IVA". Once you have made your final payment the IP could issue a certificate releasing you from your obligations to the IVA. He / she can then take as long as they wish to tie up the finances as the debtors involvement is ended.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
