I have recently entered into an IVA with Freeman Jones. All creditors have stopped taking money apart from HMRC (I had a debt with them of about £700 that they were taking back from my wages as my tax code was 1025L which was how they were getting their money back off me). Since the IVA has been accepted 7 weeks ago, this tax code has not returned back to normal. I have informed Freeman Jones about it and they have said they are trying to resolve the issue.
I did not fully make my first payment into the IVA due to being down about £120 for the month due to the HMRC issue not being resolved, so only made a partial payment to Freeman Jones for my first payment. They are saying however that I do need to pay back the £120 into the IVA at some point. I am really confused as to if this is the case as I thought I only made full payments once all the creditors had stopped taking money?
Thanks in advance!
The payments are to be as agreed regardless -- if a creditor takes money in error it will (should ) be refunded and cannot be deducted from the regular IVA payments. If FJ get nowhere with HMRC then I would suggest, this being a government department, that you ask your MP to look into it on your behalf.
In the meantime ask FJ if they will officially accept the reduced paym,ents until such time as they (and / or the MP) sort HMRC out, at which time the money HMRC have taken incorrectly will be refunded and paid back into the IVA, clearing the shortfall. It is not fair that you should bear the brunt of the misbehaviour of a creditor going against the agreed terms.
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