F&F IVA approved, questions about HMRC medications

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aurichie

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Post by aurichie » Wed Apr 03, 2019 7:02 pm
Good evening all,

I've been lurking on here for a long time and finally signed up now my F&F IVA proposal has been approved. :D

HMRC voted in favour of my F&F proposal which I'm told is quite rare, usually they abstain, but there were some modifications passed:

"Once the HMRC final claim has been admitted, any dividends due to HMRC shall be retained by the supervisor and paid as one single payment at the same time as the supervisor issues the notice and final report."

"A) (Time Limit) No time limit for lodging claims shall apply to HMRC. It shall not be possible to conclude the arrangement until such time as HMRC's claim has been admitted in full or HMRC has confirmed in writing that it will not lodge a claim."

"B) (Dividend prohibition) No non-preferential distribution shall be made until the HMRC Final Claim has been submitted and the supervisor has admitted the claim for dividend purposes."

Item A is the one that concerns me (Time Limit) the most. I presume it's standard condition HMRC requires to vote in favour? And because they are so disorganised they want as long as they request unlimited time to complete the process. What does that mean in practice? Should I be concerned?

Foggy

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Post by Foggy » Wed Apr 03, 2019 7:38 pm
An IP can put a time limit on a claim -- usually 28 days, when finalising an IVA. I imagine HMRC cannot guarantee being able to respond in that sort of timeframe and so removes this limitation.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
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aurichie

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Post by aurichie » Wed Apr 03, 2019 8:05 pm
Thanks for the reply. OK sounds like nothing to worry about then I guess, what you say is basically what I thought it meant and why it was added.

The other thing I'm only allowed one bank account as per the F&F IVA agreement. I currently have a CO-OP cashminder for my business. Since I'm self-employed and my accountant likes me to separate things, I have a basic bank with another provider - it has no overdraft facility or even direct debits allowed. I also have a prepaid U Account with a mastercard so I can have direct debits for things like TV license.

I assume I should discuss this with the company who is handling my IVA to see if I can get an exception? I don't want to get hammered with a breach for something so trivial. If I really have to, I'll shut the pre-paid and basic accounts down, and I'll just have to mix all my business and personal expenses together in the single co-operative bank account. But ideally I can avoid that.

luluj

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Post by luluj » Thu Apr 04, 2019 1:18 am
Your banking arrangements are a little difficult to manage when in an iva and most IPs should know and understand the need to have separate accounts, at least for the business and personal side of things.
Have a chat with your IP and explain - am sure all will be ok.
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Foggy

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Post by Foggy » Thu Apr 04, 2019 6:51 am
Can't say that I have come across a "One bank account" stipulation before ) was this HMRC also?). I ran two cashminders alongside each other: One as main account to covers all the fixed expenses and DD's, the other for the household spends.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

aurichie

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Post by aurichie » Thu Apr 04, 2019 1:28 pm
Thanks for the replies.

The one bank account condition was stipulated in the IVA proposal before the creditors meeting. It wasn't a modification by HMRC or anyone else. With exception to the one account I'm allowed to keep, It specifically states all other accounts must be closed and associated debit/credit cards destroyed.

I'll see what's up with that and see if I can get an exception.

Thanks for the advise both of you. :D

kallis3

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Post by kallis3 » Thu Apr 04, 2019 4:05 pm
Were your accounts with creditors? Who was your IP?
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aurichie

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Post by aurichie » Thu Apr 04, 2019 5:48 pm
None of the accounts were with any creditors.
IVA is being handled by payplan.

kallis3

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Post by kallis3 » Thu Apr 04, 2019 8:07 pm
I have never known Payplan stipulate that.
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.
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aurichie

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Post by aurichie » Thu Apr 04, 2019 8:59 pm
It's in Section 1. Proposals, Statements and Obligations;

1.5 Further Credit Facilities: I understand that I must not obtain any further credit greater than £500, except for public utilities, without the prior written approval of the Supervisor. I shall confirm to the Supervisor that all credit and debit cards have been destroyed or returned to the issuing Bank or Finance Company with the exception of any debit cards that are attached to my main bank account.

kallis3

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Post by kallis3 » Thu Apr 04, 2019 10:10 pm
You won't be taking out any further credit and I cannot see you are only allowed one bank account.
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

Foggy

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Post by Foggy » Fri Apr 05, 2019 6:43 am
That just refers to credit arrangements / overdraft facilities and the like. You cannot overdraw on a basic account, therefore there is no credit involved.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

aurichie

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Post by aurichie » Wed Apr 10, 2019 1:55 pm
Thanks. I have resolved that you are correct, that is only in regards to obtaining further credit. Since none of my accounts have any credit facilities, this condition doesn't apply to the accounts I hold.

I have another question now. I have received the chairman's report asking for my signature. But they haven't signed the documents themselves. I've asked them to sign the documents before payment is released. They are saying they will sign it, but they tell me it's not necessary and the agreement is already binding on everyone involved. Would you release payment without a signature, or do you think we're right to insist they provide the signed documents?

Foggy

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Post by Foggy » Wed Apr 10, 2019 2:17 pm
Payplan are a reputable firm and I am sure that they will sign off the report in due course. I personally would go ahead and sign. The meeting has been held and the IVA is in force with the terms and conditions already agreed.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

aurichie

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Post by aurichie » Wed Apr 10, 2019 3:03 pm
Well I've already signed and sent it to them. The question is should we release the F&F payment before they countersign off and return the report to me?

Keep in mind - we're already at the deadline date they set to get the payment in to them.
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