www.iva.co.uk

Hi All
We made our final payment in October 12 - We were told that it would be a 6 month closure time and in that time we have had the EIC Letter and the Mass variation letter - I dropped an email to closure team and after two weeks got the following reply - My question is how did GT now know in the last 6.5 years that Capital one hadn't claimed - Why are they only now chasing them?
The response I had is below:-
The closure of your case is still ongoing. We are currently at the Liability Review stage of the closure process. This is when we make contact with your creditors and request that they submit their claims to your. Agreeing claims does tend to be the most lengthy stage of the closure process.

At present one claim to your arrangement remains outstanding and we are in contact with Capital One accordingly. We will submit a final notice to prove advising of a final deadline to be submitted. If Capital One fail to respond we may look to exclude this claim from your arrangement for dividend purposes. One all claims have been agreed can progress with the closure of your case.

I must also advise that We recently received independent legal advice regarding the treatment of unrealised assets such as mis-sold PPI and VAT refunds. From this we are issuing correspondence outlining how we intend to proceed with these issues. Essentially we are proposing that these matters are dealt with after the closure of your arrangement. You should be in receipt of this documentation in the next few days.

This is one aspect I cannot fathom ... I have recently been transferred to GT -- but my old IP had all claims agreed before the end of Year One -- I hope GT don't expect to go through the whole process gain in the final 5 minutes !!!

Why, oh why, does the end of an IVA come as a complete surprise to the IP ???

But surely GT must have known this all along and when I look at the distrubtion of funds over the last 5 years they have given funds to Capital One!
Why is it only now a problem?

its only a problem now becourse they are not capable of running iva's properly.they want the business but are not willing to do the correct work that an iva involves.the fees are all they see.they obviously have not got the nounce or manpower to run cases efficiently.glad im not with them as its bad enough being in iva without all this excess baggage to contend with.

I think this is the case of many back on track, only now are my iva provider and the claims management company dealing with an off-set debt which should have been challanged in August of last year. It does seem that whilst you are paying into your IVA thats ok but as soon as you have finished it's like limbo land, you finished but can't move on, you can't finish because something/someone is preventing you from doing so, so you are stuck and reliant on inept, shambolic and appalling customer services from not one but several IVA providers, shame on them!

GT can't even get the fees right, the make a total mess of that too.

If GT were in the brewing and party organising business...........

I am afraid that this does not make sense to me either. If dividends have been paid - which of course they should have been from the first year of the IVA probably, then the claims must have been agreed before the first one could have been effected.

I suggest that you go back to GT to gain further clarification on this point.

Mel

GT have a strange way of managing dividends. The first two years of my IVA were with BE and dividends were paid quaterly. I also had a second year statement that said all claims were received. Since GT took over they have paid no dividends and after my last payement went through the claims process again.

Thanks Mel, I will try again to get a sensible answer! it may take a while.....

Hi All,

I have this update today from GT:-
Thank you for your reply.

A creditor can submit a claim at any time throughout and IVA, however most tend to leave this until the closure stage. I can now confirm all claims to your arrangement have been submitted and agreed and we can progress with the closure of your case.

We will now complete a detailed review of your case form the beginning, assessing any interim payments made to your creditors and calculating the final dividend to be paid.

Thank you for your continuing patience in this matter, should you have any further queries please do not hesitate to contact customer services on 0844 8552166 or via email at iva.closures@uk.gt.com.

Lets hope the end is in sight - Quick response from GT via email too.

I cannot believe you have received that correspondence from GT. Most creditors definately do not leave it until the closure stage to submit claims, and if your case is governed by the IVA Protocol, then creditors are obliged to submit their claims within 4 months of acceptance.

I really do think that you should alert Karol to the feedback you have recieved from her colleagues, and allow her to respond directly. Something does not make sense here.

thanks very much Melanie - I have emailed Karol as you have suggested. I'll await her response and let you know.

Great Communication from Grant Thornton and looks like the end is in sight!
Thanks Melanie for the advice to contact Karol - I'm presuming the creditors meeting is as a result of the spotty letter......Their reply is below for Info
refer to your Voluntary Arrangement and your email to my colleague Karol Wilson regarding the closure of your Arrangement.

I have reviewed your case and can advise that all of your creditor claims are now agreed. With regards to creditors submitting late claims I can confirm that Capital One had submitted their claim at the beginning of your Arrangement, however as this balance exceeded 10% of your Statement of Affairs balance further supporting documentation was requested to substantiate their claim. Funds have been reserved to ensure this creditor receives an equalising dividend once final distributions are made to creditors.

Paragraph 13.5 of the IVA Protocol states "Creditors not submitting claims within 4 months of the meeting to approve the proposal will be excluded from participating in dividend payments, unless a reasonable explanation is provided for why this delay has occurred. In cases where the supervisor accepts the explanation is reasonable, those creditors will be entitled to receive their full share of dividends, notwithstanding the fact that some distributions may have been made prior to the submission of the claim."

Whilst it is inevitable for some creditor claims to be excluded Grant Thornton will use this discretion to permit claims to Arrangements as we find that this minimises the amount of unnecessary creditor contact post closure.

We are currently in the process of finalising calculations in order to make final distributions to your creditors. Closure administration will then be complete to a point where we will only be awaiting the outcome of your creditors meeting. We will then be in a position to issue your completion certificate.

Thank you for your continued patience. Should you have any further queries please do not hesitate to contact a member of my Customer Services Team on 0844 8552 166 or by email ivacustomerservices@uk.gt.com.

Doesn't a bit of communication make things seem better ?