Coincidentally to this thread I received a standard "mass variation notification" letter today from my IP about my IVA, and the HMRC VAT and PPI issues. Attached was a Variation Circular (meeting of creditors on 30 November).
The PPI variation is interesting. It will allow cases to be closed even if (lengthy) PPI claims are still ongoing. With regards to the VAT it is proposing a method of making repayment to the creditors, in the absence of HMRC guidance.
So both these measures should speed things up going forward.
Last edited by Hyperdrive on Thu Nov 01, 2012 6:36 pm, edited 1 time in total.
Mel, with regards VAT refunds, I'm guessing the registered holder(s) of the debt at the time the IP makes their next distribution will receive these reclaimed funds? Why I ask is that a significant number of my debts were sold on to NPL/distressed debt cos. towards the very end of my arrangement so in theory shouldn't most of the VAT paid throughout actually go to the original creditors?
Before we are able to close your case, we need to clarify with your creditors how we should distribute any VAT refunds and any monies received from Payment Protection Insurance(PPI) compensation,
We are going to do this by holding a Supervisor’s variation meeting.
This variation meeting will allow us to then complete your IVA and subsequently distribute the VAT/PPI monies, once we have received them.
Once we have issued a completion certificate, we will then instruct the Insolvency Service to remove your IVA from the Insolvency Register.
As we need to give your creditors at least 28 days’ notice of a variation meeting, we anticipate that your variation meeting will be held during November.
Once it has been held, we will then be able to complete your case, and issue you with a Completion Certificate.
The VAT will be distributed to your creditors pro rata, regardless as to whether there was any VAT being paid or any changes to VATs the funds still would have been distributed to the creditors. It’s also to provide the creditors with an increased dividend as with an IVA only a percentage of the debt is paid back.
If you haven’t been applying for PPI, the VAT still has to come back and be distributed. The reason why the solution above has been put in place is to ensure there are no further delays on the completion certificates being sent out to clients. ???
Once the monies are received they are distributed to the creditors included in the IVA. If the debts have been sold on Sebastian, the new purchsers are entitled to receive the money.
We are waiting for our completion certificate which is being held up by VAT problems.
We have applied for our PPI back which has now been accepted but they are saying it will have to be paid into the IVA (Harrisons Business Recovery and Insolvency Limit)we wasn't with them, we was with Payplan. Can you help?
Why is this being paid to another insolvency company?
This particular loan was before/not included in our IVA so why don't we get it back?
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by bane
Same as Mel (Payplan) or I say was.
We are waiting for our completion certificate which is being held up by VAT problems.
We have applied for our PPI back which has now been accepted but they are saying it will have to be paid into the IVA (Harrisons Business Recovery and Insolvency Limit)we wasn't with them, we was with Payplan. Can you help?
Why is this being paid to another insolvency company?
This particular loan was before/not included in our IVA so why don't we get it back?
Thanks
It sounds as if the creditor repaying the PPI has either mixed up your claim with another person's or ( as they did in my case) chose to send it to a company my IP worked with a while ago, rather than the one she worked with at the time (where they got that from, I have no idea).
Speak to Payplan about this as they will need to liase with the creditor to ensure the refund goes to the correct place.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
