www.iva.co.uk

Hi, is there a length of time in which creditors have to make their claim or can it be anytime within the 5 year period of the IVA , thnks

I belive this has been answered by Michael Peoples on another post. I believe your IP issues a notice to the creditor to claim payment and they have a set time to reply.

Ooo I didn't know this. So what happens? Your Ip asks the creditor to claim a payment within a certain amount of time, and what if the creditor doesn't do it in time? Does this ever happen?

The other creditors then will get what isn't claimed shared between the pro-rata up to the original debt. In the unlikely event thier is any surplus then you would get it back. In reality if someone said to me I had a set time to claim some money I don't think it would be unclaimed.

hey merry potter

iva4us is right.


in the unlikely event that a creditor should forget to claim their share then your other creditors will share the proceeds.

your ip will have given them sufficient notification

take care FD[;)]

THANK YOU

Hi
Your creditor has the whole five years to confirm a claim
Regards

Sorry Andy - in a Protocol Compliant IVA the Standard Terms give 4 months:

PART VII
DIVIDENDS AND CLAIMS
Dividends and claims
17(1) The supervisor may allow for dividend purposes claims submitted by creditors as at the
effective date. If any creditor does not make any claim in writing within 4 months after the
effective date, then that creditor may not participate in any dividend payment, subject to
paragraph 17(3) below.
17(2) The supervisor has the discretion to admit claims of £1,000 or less, or claims submitted that
do not exceed 110% of the amount stated by the debtor in the proposal, without the need
for additional verification.
17(3) Any creditor who makes a late claim will be entitled to participate (subject to the
supervisor accepting that the creditor has a reasonable explanation as to why any delay
occurred) and to receive their full share of dividends notwithstanding the fact that some
distributions may have been made prior to the submission of the claim.
17(4) The supervisor may ask for any further details or documents he/she think necessary to
establish the amount due to any person claiming to be a creditor.
17(5) The claims of secured creditors, foreign currency debts, debts payable at a future time,
and interest on debts will be dealt with in accordance with the Bankruptcy Rules.
17(6) Where any creditor agrees, for whatever reason, to make a repayment to the debtor
during the continuance of the arrangement, then that payment shall be used solely in
reduction of that creditor’s claim in the first instance. If such repayment results in the
creditor’s claim being entirely extinguished (after the application of set off) any surplus will
be treated as an after acquired asset and offered to the supervisor for the benefit of the
arrangement.

When a self employed person enters an IVA the debt for the whole tax year becomes part of the IVA. Since this debt cannot be agreed until after the end of the tax year and the return is not due until the following January it can take up to 21 months for HMRC to submit and agree their claim. This claim is perfectly valid and the delay is unavoidable.

I have just started excluding some creditors from my distributions, as it is so frustrating when they do not claim. It goes against the grain of being an IP to deny major household names their money, but after writing at least 10 letters to them, faxing, e-mailing and phoning - it is pretty poor that they still do not confirm to us how much they are owed.

Hi
Crikey, that is a big change David.
Is it legal ?
Regards

It has been since the introduction of the IVA Protocol in February 2008 Andy.

Hi
But a protocol is a voluntary agreement

No - because the IVA in which the creditor has agreed to be bound by forms a valid contract to be honoured by all parties.

Hi
Good point
Regards