Hi All
Where to start...
Ok .. My wife and I started our IVA 3 years go and we made the required monthly payments on time every month. In December 09 my wife had a tax advisor look at her tax return forms and he told us that the figures she put on the IVA forms were wrong, we had put her gross amount and not her net amount on the IVA forms. I informed the IVA company and they said that due to the new figures we did not now have enough disposable income. They told us to have a 6 month payment break and to contact them again in June when they would revise the plan. I have just been on the phone to them and to be honest i am disgusted by their attitude. Basically they said if we do not make the payments then we are in default and the IVA will fail. He said he will inform the creditors who will add all the interest back on and start to hound us for the money. He was totally unhelpful and gave the impression he didnt care at all.
We are now thinking we should just call it a day and apply for Bankruptcy.
Any advice on what we should do next guys?
Best regards
Vince
Pretty poor advice there and very unhelpful. Have you submitted an up to date Income and Expenditure form to your IVA Company? If not I would do this asap but it is in nobodys interest for the IVA to fail especially 3 years in.
Hi rayb
Yes, we submitted the revised form back in December. It was based on the new figures we submitted that they told us to have a 6 month break.
Regards
Vince
I would still email your IP, sounds like you have been dealing with a member of Office Staff.
Also as I say it is no-one's interest for this to fail and the fact you have made 3 years contributions reflects this. I would say to them personally that you have made the effort to pay and would maybe say to them to put forward a motion to conclude the IVA based on this. If you go bankrupt you will have to fork out I believe £600.00 each if you are both doing it and then may have to pay an IPO (Income Payments Order) for 3 years based on your disposable income and then your credit history if shot for a further 6 years.
Who is your IVA Company out of interest as they may post on here and assist?
I am curious how you managed to maintain the payments for three years if your income was overstated. It appears this only came to light when your accountant looked at the case and you do not say that you were struggling previously.
Rayb,
We have have never had a email address for our IP, Only a general email address for the company. They are McCambridge Duffy LLP based in Derry, Ireland.
Each time we have spoken to them it has been a different person, although on the letters it states our IP is Judy Mooney, I dont recall we have spoken to her personally though.
The person I spoke to today said that, based on the figures we gave in December, we did not have ANY disposable income.
Regards
Vince
I am new to the forum but if you are with McCambridge Duffy LLP I think Michael Peoples should be the person to conact as according to his profile he is the Manager of the self employed team there so should be able to help you as he should have first hand knowledge of your case.
Hopefully Michael will pick up on this tomorrow, he was obviouly not aware that Clockwork was a client earlier.
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
Michael Peoples wrote:
I am curious how you managed to maintain the payments for three years if your income was overstated. It appears this only came to light when your accountant looked at the case and you do not say that you were struggling previously.
How did you make up the shortfall?
Hi
My wife is Self Employed as a Carer. She cares for adults with learning Disabilities. Out of this money she has to provide meals and activities for the people she cares for. For example, 3 people each day is the maximum she is allowed by law. She receives £60 per day of which the tax man allows £15 per person. To cover meals, activities etc. At the start of the IVA we were told to just produce my wage slips and my wifes pay remittances and they would work out our monthly IVA payments. In September 09 a Tax advisor pointed out to my wife that the IVA company were using her Gross income amount instead of her NET income amount, and had been doing so since the beginning. We informed the IVA company, via a new Income and Expenditure form, and in December 09 they said they would give a 6 month payment break.
We were certainly finding it very hard to make the payments, but we were under the impression that was the norm when on an IVA plan.
Regard
Vince
I am in an IVA and am self employed. I had to produce formal accounts and projections showing my income. Did your IP not confirm what your net profit was? Seems strange that they have been using your gross?
I'm sure he will pick up on it tomorrow and help you out.
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 think Michael posts on here quite often. He should be able to help you. It doesnt seem right that they calculated your income wrong and now you're left struggling!
Michael will absolutely want to deal with this personally when he next comes on line - he is that type of guy and will take full responsibility for sorting out what seems to be a genuine misunderstanding. You are in safe hands Vince - hang in there.
I also was part self employed and had to submit accounts which showed my tax liability fully. Same IP as you and we spoke with her at least twice when we had concerns or changes (and we had a few)! We also had specific named contacts within McCambridge Duffy who always responded to our emails the same day. We were never given the impression that 'they didnt care' in fact it was very much the opposite, they said that they would look at several options before they would see the IVA fail. I was more concerned at one point that they would be getting fed up of me contacting them so often, but no they always said 'contact us as often as you like, we would rather know and be able to resolve your concerns than not'.
I am sure if you email Michael Peoples via his link on this forum you will get this sorted without failing your IVA.
