My partner has had an IVA for the past 4 1/2 years and I've been making more than my fair share of contributions to help him service the IVA. I recently was in a position to make a F&F offer to end his IVA early. The IP put the F&F variation to the creditors at a creditors meeting in which my partners proposal for a variation was accepted. The IP wrote to him to say that once the funds were received he anticipated making a payment to the creditors and the issue of a completion certificate within 21 days. The cheque for the F&F was cashed yesterday. Today my partner received a letter from his IP stating that due to a recent court case between Paymex v The HMRC the IP's VAT would have to be reclaimed as a windfall payment to be distributed to my partners creditors. He stated that until this was done he would not be in a position to formally complete the IVA. I now feel that I've been misled as I was not informed about this possibility which the IP must of known about a few weeks ago and before they cashed my cheque as the F&F payment. I'm really gutted as I wanted to clear the IVA. My partner has now been told that due to a back injury he can’t do his normal job again. Although he's not out of work (yet!) the future for him is very uncertain. We were hoping to get married early next year with him no longer in an IVA. However, if the HMRC take ages to refund the VAT to the IP or to lodge an appeal to the court I fear the IVA won't be completed for a very long time. Why was my partner not told about this situation and why was my money cashed if the IP couldn't issue a completion? Please help as my partner wants to speak to the IP on Monday and feels he would benefit from any IP's on here advice
There were a couple of firms who put a hold on completions until this matter was sorted out, but have since discovered that they do not need to. I believe Mel's firm are still processing completions as normal as should other firms. Might I ask which firm this is ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I'm quite happy to name the firm but would rather wait until I've heard from Mel or another IP first if you don't mind. PS! please don't be offended by this reply?
There's no need for them to keep your case open. The same vat situation also applies to cases which have already completed - so there's no need to hold up pending completions. Hope you can bring this to a close. x
Sorry - missed this one as I have one eye on the cricket and one on the computer!
The Paymex decision is affecting all of us, is completely tedious and unecessary in my honest opinion - but then we don't make up the law. I have personally taken the decision to contine to close cases whilst the regulators and the legal eagles decide what to do. If there is an eventual refund of VAT due to creditors, this can easily be done once the case has closed - so I am not sure why your IP is delaying closure unless he has received legal advice to the contrary.
It would be interesting to hear which firms are and which aren't closing cases in the aftermath of this case.
Tenon did stop for a while, but I believe, after taking advice, have started again.
What are Payplan and GT doing, as well as the other forum represented firms ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Mel, thank you so much for putting your viewpoint. I understand about the court ruling but what I don't understand is why did my partners IP allow me to make a F&F offer having known (or reasonably ought to have known) that he couldn't or wasn't able to progress closure of the IVA early. AFAIK contract law says that once someone has agreed to something and has stated their intention to do so in in written or verbal form and then reneges on that agreement then they have broken a contract? In addition isn't it unethical to accept my money knowing that a completion wasn't going to be done? Do you think I should complain to the regulatory bodies?
Hi again, Maddy. The IP was probably acting as he / she thought best as the overriding effect of accepting the full and final has been to stop your husband from having to make any further monthly payments, thereby allowing you to live a little more comfortably.
All proposals allow for a period of up to 6 months for closure in any event, a subject oft discussed on here.
What I would do, in your case, is to try to get some form of written undertaking that your husband will no longer be obliged to offer up overtime, bonus payments and windfalls, as the delay is not of your making and you shouldn't be penalised for it.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
