Foggy,im not sure what you mean by ignore the first part of my last post.Yes we were originally in for 60 months,but because we could not release equity the creditors agreed to 12 moths extension in lieu of equity.We have now finished paying for 72 months.So am i reading it right that creditors must receive the final dividend within 75 mths.
It was just that you had answered my question regarding the extension while I was typing my question :0)
Your proposal states:
the duration of the proposed voluntary arrangement is 60 mths unless an early conclusion is agreed by creditors.The duration may be extended at the sole discretion of the supervisor in order to realise assets,agree the claims of creditors & deal with all matters arising under the voluntary arrangement but creditors must receive the final dividend within 63 mths of approval unless there are payments in lieu of equity still to be introduced.
Specifically creditors must have final payments within 63 months ...UNLESS payments in lieu of equity still to be introduced.
This can be interpreted different ways:
1) As payments in lieu WERE introduced the 63 month period is removed completely. Or..
2) There is the same 3 month leeway allowable after the payments in lieu of equity are finished. Or ..
3) Final distribution should be made as soon as the last payment in lieu of equity has been made.
I am sure there are others. I would mention 3)to your IP (he might counter with one of the others, or his own unique view).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks Foggy,Are you saying i should contact my ip & state they cannot extend for upto 12 months for ppi purposes due to my proposal stating:
the duration of the proposed voluntary arrangement is 60 mths unless an early conclusion is agreed by creditors.The duration may be extended at the sole discretion of the supervisor in order to realise assets,agree the claims of creditors & deal with all matters arising under the voluntary arrangement but creditors must receive the final dividend within 63 mths of approval unless there are payments in lieu of equity still to be introduced.
Or are you suggesting i should say they cannot extend my iva upto 12 mths for ppi purposes because:
3) Final distribution should be made as soon as the last payment in lieu of equity has been made.
First off Kieser, I am not an insolvency practitioner and I would wait until one picks up this thread and provides their own insight.
If I was in your position, rather than going all out for a fight, first of all I would ask my IP that, in view of Section 5.4, Duration of Arrangement, under what authority do they propose to extend the administration period further.
Thie reply should give you an insight into their line of thinking, which you can then, possibly, challenge.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi, Keiser. I am in a similar situation. I too have been in and IVA for 72 months, however mine was extended as my husband lost his job. This 12 mth extension was to cover the lower agreed variation. In Feb this year, My IVA was due to end however there was a modfication for equity. I tried to release equity but as there was none to release and the modification was intially for less than £5k I was intially told that it would all be straight forward and that IVA would end. However in Jan just before the IVA end was due I was told by IP that they would have to extend by another 12 months to cover the shortfall in enquity. I have disputed this since January, they then sent me out a variation report to sing saying I would agree to extend the term by 12 months. It was at this point I had enough. I refused to sign the report and told IP I was told there would not be an extension. IP agreed to this and told me there is a 90% chance that the creditors would accept what I have paid in without the extension of equity for 12 months being added? I received a new variation report last Thursday which is now re-worded to end the IVA as enough monies have been paid in? Why could this not be done in the first place? If I had signed the first report then I would automatically be extended by 12 months. I am now in touch with FOS who are dealing with my complaint for mis information, but IP needs to give written response before they will deal in full. I have refused to sign the second variation report as this states for an extension to claim PPI and also HMRC, this was not stated in my original proposal so am refusing to sign again. Clearly IP is not acting on my behalf here. I have not been misold PPI and stated this several times,
Many IP's these days, when faced with an older proposal which didn't address equity in similar terms to modern Proposals are getting variations accepted by creditors bringing them in line with the Protocol Compliant proposals. As there seems to be a high acceptance rate at the moment I fail to see why all IP's aren't taking this line.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
With regard to the duration of an IVA, this is clearly detailed within the proposal documents and therefore you should clarify this with your own IP, and also ask them to highlight the area which allows them grounds to extend for longer than the suggested term.
There is clear caselaw which confirms when an IVA has concluded and when it has not, and anyone in any doubt as to whether their IP is acting outside of their ambit should seek specific legal advice. There has been enought debate on the forum about PPI reclaims to last most of us a lifetime, and at the end of the day none of the professional posters can given proper advice about cases we don't know the full facts of.
I emailed my IP with the questions below & asking about the statement below which is in our proposal
This is in our proposal:Duration Of Arrangement.
The duration of the proposed voluntary arrangement is 60 months unless an early conclusion is agreed by the creditors.
The duration may be extended at the sole discretion of the supervisor in order to realise assets,agree the claims of creditors and deal with all matters arising under the voluntary arrangement but creditors must receive the final dividend within 63 months of approval unless there are payments in lieu of equity still to be introduced.
This is what i put in my email:
The facts above are clear & precise:
1) Final distribution should be made as soon as the last payment in lieu of equity has been made.
2) In view of Section 5.4, Duration of Arrangement, under what authority do you propose to extend the administration period further.
3) With regard to the duration of an IVA, this is clearly detailed within the proposal documents and therefore i ask you to highlight the area which allows you grounds to extend for longer than the suggested term.
4) We have had no contact from you prior to the letter dated 09/07/2012 regarding this proposed extension,We had no prior knowledge or warning of before the anticipated 'completion date' of our IVA.
5) We have had no notice given to us of you proposing a variation of our agreement.
This is the reply i received:
Following the decision by UK banks to abandon their appeal against the judicial ruling into the mis-selling of PPI it has now been established (1) that PPI claims must be paid out rather than being offset against claims within the IVA and (2) that this pay out is to be deemed as compensation which needs to be paid to the estate under the IVA proposal.
We have acted on this information as swiftly as possible, however, as you can appreciate there are a significant number of cases to be investigated so the Arrangements approaching completion are being prioritised.
I previously advised you of a possible delay in receiving your completion documents due to our PPI mis-selling investigation in my email to you dated 14 May 2012.
Your Arrangement may be extended for a maximum period of 12 months, however depending on how quickly we receive information from yourselves and from your creditors the extension may be a lot shorter and your completion documents will be sent to you as a matter of urgency once our investigation is complete. No further contributions will be required from you after July 2012 contribution as you have met all your obligations in this regard.
In regards to section 5.4 of your proposal regarding creditors receiving the final dividend within 63 months of the approval, this became inapplicable due to you having a 12 month extension in lieu of equity in your property. Your proposal also states that the duration may be extended at the sole discretion of your Supervisor in order to realise assets. Any compensation resulting from the mis selling of Payment Protection Insurance that you may be entitled to is an asset of the arrangement which your Supervisor has an obligation to recover. I can assure you that the matter will be dealt with in a timely and efficient manner.
