could we have kept our money?

[a.g]

Clause 5.5 of our arrangement deals with how much we are going to pay into our account and that they should not be lowered without the consent of 75% of the creditors. That we should make 60 payments and should we fail to do so a meeting will be convened to decide if and how to proceed. Since the beginning we have been getting letters which say that we should pay 50% of any overtime, bonuses, commission or additional payments over what we have already declared, yet the actual wording which is in inverted commas does not appear in the Clause that they refere to, ie 5.5. But we have paid more than £1000 more, over the 30 months we have been in it. In early Feb we got a letter which said we need not make an extra payment that they had reqested, followed 20 days later by the letter refering to clause 5.5 again. The information is actually in Clause 5.6 but it doesn't say what they suggest in the letters. I don't have enough room to put what is excactly written. I just want to know could we have kept our money?

[MelanieGiles]

Hi ag and welcome to the forum

That will depend upon the exact wording of your IVA, and also whether it was modified by creditors at the meeting. Why not ask your IP to give you definitive advice as to the section they are relying on, or post the full wording of those clauses on the forum so we can help.

[a.g]

Clause 5.5 within 1 month of my proposal being accepted by my creditors I shall commence to make, jointly with my husband, voluntary contributions in the sum of £x per month with credit to be given for any payments already made to the nominee. These payments will not be lowered below this level without the consent of 75% of voting creditors.Attached at appandix V and VI are an income and expenditure account and cash flow forecast to support the proposed monthly contribution.In total I, jointly with my husband, propose to make 60 consecutive monthly payments to the supervisor for the benefit of my creditors.Should mt contributions become three months in arrears not necessarily consecutively or should they fall below the specified level this will constitute a default and the arrangement shall be deemed as failed. The supervisor will convene a meeting of creditors for the purpose of deciding if and how the arrangement should proceed.
Clause 5.6 The supervisor will undertake an annual review of the trading with a view to assessing whether additional surplus income has been achieved from the business activities. I will provide to the supervisor annual trading results within two months of the anniversary of the arrangement. The supervisor will be at liberty to request increased contributions from income should the business prove to be profitable than expected, at a level of 50% of any increase in surplus income. The supervisor will not be liberty to reduce monthly contributions below the levels indicated in clause 5.5

[MelanieGiles]

This gives the supervisor the ability to increase your contributions to take account of 50% of increased trading profits generated - which can only be verified at the end of the year once the trading accounts have been drawn up.

Were there any creditor modifications which may have introduced other contractual terms?

[a.g]

there were no modifications

[MelanieGiles]

I think you need to get your Supervisor to explain where they get the figures from in that case.

[a.g]

They got the figures from me. I have been doing monthly reviews myself and sending the money to them because I didn't want to get stuck with an extra bill at the end of every year. Having read through a few of the topics on this site I now find that, that wasn't necessary. My point is that since the specific wording on the letters does not apppear anywhere in our arrangement does that exclude us from having to pay the extra.(Just hoping though not I realise I'm clutching at straws).

[MelanieGiles]

If you have no requirement to pay over additional monies, then I cannot understand why you have done so to be frank. If they will not refund the money to you, hold back on your next payment(s) until you have absorbed the additional monies paid.

[a.g]

I understand that I have been a little naive I won't be doing that anymore. One more question though what if, before the end of the arrangement is reached, we have paid in the total required amount? Can we request an early conclusion without having to pay anything else.

[MelanieGiles]

I think you would be well within your rights to do so, but check this out with your own IP to be sure.

[a.g]

would you say then that it looks like there is no requirement to pay anything extra,and only to pay increased cotributions at review.

[MelanieGiles]

I cannot comment further as I do not have the benefit of your file. Please discuss this directly with your own IP.

[a.g]

I would like to say a big thank you from both of us your advice has been invaluable. I shall contact them in the morning and update you as soon as I know. Thanks again and many blessings to you and your family.