www.iva.co.uk

Hi
we had our IVA transferred from Clear Start to Debt Free Direct last july and we are just going through our 3rd Annual Review.
One thing I'm a little concerned about is that we've paid in over 30k into our IVA over 3 years and no dividend has been paid to our creditors yet. does anyone know if this is usual. I've just heard of a news report that states companies aren't paying creditors leaving them back at square one.

Hi
You have nothing to worry about, DFD are the largest IVA provider in the country. Dividends will be paid at some point and older IVAs tend to have this approach, recent protocol compliant IVAS tend to pay out dividends earlier and more regular.
At the end of the day your creditors will get the same.
Regards

Perhaps Declan can explain why DFD have not commenced any payments yet to your creditors. Unless you are self-employed, where the receipt of a final HMRC claim has not been submitted, dividends should be paid at least annually - and the timing of dividend payments will be dictated within your proposal document.

3 years sounds an unusually long time not to have paid anyone.

or perhaps the creditors have not updated thier records as is quite often the case at the beginning of the iva when things dont get filtered to all departments.

I think that it does seem a little unusual to have paid that amount of money into the fund without a distribution, but as the 3rd anniversary is looming, I think it's likely the IP is looking to minimise administration costs and circulate a dividend with the annual report.

There may also be a delay if not all creditors have sumitted their claim.

Thanks for all your advise, it's put my mind at ease a little. I hope Declan can shed more light on why it hasn't been paid. 30k is a lot of money for us and we're proud of the fact our IVA has been going so well so far, I'd hate to hit a glitch at this stage

IPs have plenty of tools in their toolboxes to ensure that creditors do submit claims in a timely fashion, and should be setting an end date well within the first year for claims to be submitted.

The IVA protocol allows IPs to strike out claims which have not been recieved within the first four months, but in my experience most of them come in at the creditors meeting stage or shortly after in any case.

I assume that there must be some good reason why a distribution has not yet occured in your case, but this should be highlighted in your most recent annaul report, as presumably creditors are wondering where their money is as well.

Given that the IVA was only transferred from Clearstart a year ago it is likely that DFD will send a dividend out with this year's annual review. To be fair to DFD there should have been a payment before they received the file and it may not have been complete when they did get it.

When DFD purchased ClearStart, we went through quite a long transition phrase in which ClearStart cases were transferred over to Debt Free Direct. As of now all the cases have successfully transferred over and we are now close to completing the backlogs of dividend payments to creditors. It is however, important to note that the timing of dividend payments to your creditors are generally, in Clearstart proposals, at the discretion of the supervisor unless specifically determined by a modification to the proposal by your creditors. As long as you maintain your monthly payments then there will be absolutely no issues with your IVA.

Sharon – In order to set your mind at rest can you please contact our Customer Services Department on *number deleted* with your case details so that you can be updated the current position of your IVA.

Sharon - can you let me know when you have picked this up as I need to delete the phone number, otherwise DFD will be inundated with all sorts of phone calls.

Hi

Thanks for getting back to me. It's put my mind at rest. I've picked up the number and will phone them to get an update on our IVA

Thanks again [:D]

Thanks Sharon,

Hope everything gets sorted.

Hi Sharon
Hope this helps.

Thanks

kallis3 wrote:

Sharon - can you let me know when you have picked this up as I need to delete the phone number, otherwise DFD will be inundated with all sorts of phone calls.

You saying this place is full of weirdos??[:p]

Of course not - it's the others who spam us who may be watching and waiting for a chance to bombard firms with all sorts!

We are lovely people on here![:D]