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radnor12
New Member

4 Posts

Posted - 10 Jul 2017 :  10:02:28  Show Profile  Reply with Quote
Hi I was hoping you could help I have been in an IVA for a couple of years with knightsbridge insolvency about 18 months ago the company I was 50% owner of xxxxxxxx ltd which I owned (brokerage of motorhomes a bit like an estate agent for houses)ceased trading (no debt) as my partner had other interests and could no longer give the time. I started 100% my new company xxxxx ltd which is doing ok. Originally I was earning 12000 a year and have always maintained my payments every month. Then in april they asked for my tax return which showed 16000 (as some of this was from the 50% company as we divided/shared the money in the company.
They are now asking for 3 months bank statements which will show i have been taking 1600 a month for the last 3 months BUT this is a seasonal business and that is the 3 best months of the year I feel by some of the conversations on the phone that they are trying to antagonise/intimidate me as they have also asked for business bank statements (which they have no right in seeing as the company is nothing to do with my personal debt). along with them doing the ppi claim,they just dont stop requesting things they even send me letters saying " thankyou for providing me with the information about your personal tax however in order to complete my review i require the following" then theres nothing so you have to ring them.
It is important to mention that this debt is over 12 years old but i had a voluntary arrangement with a company payplan to pay all my creditors back but it would have gone on for 20 years under that arrangement so i choose an IVA just under 2 years ago
i would be grateful for any feedback/help as i have another 4 years left of this

IVA Adviser
IVA Expert



734 Posts

Posted - 10 Jul 2017 :  15:41:22  Show Profile  Reply with Quote
Welcome to the forum radnor12.

Your IVA provider has a duty to ensure you're meeting your side of the IVA agreement. This will involve seeking evidence of things from time to time.

In terms of your business being seasonal, you should make this clear to them. There are many types of work that do bring in variable levels of income throughout the year so I'm sure your IVA supervisor will be used to dealing with this type of scenario.

In terms of the business bank statements, I'm not sure that this is entirely unreasonable. You've mentioned that you're the sole shareholder, so if the business had (for example) accumulated a large cash surplus it might be interpreted that you've developed an asset (the value of your shares) in which your creditors might legitimately have an interest. I can see why an IVA provider might take an interest in this given that you control the firm and the flow of funds from it.

As for the service you're receiving in general, you do have the option to complain to the firm if you're dissatisfied. A senior person should then review your case and assess whether you have a case. It certainly is the case however that an IVA is a more "involved" process than the debt management plan that you were in previously. It's a formal insolvency, rather than an informally negotiated agreement that can be exited at will by you or your creditors.

It's really best to work through all of this, including raising your concerns if you feel it to be appropriate, directly with your IVA supervisor. The danger is that if you reach an impasse about all of this you might be adjudged not to be complying with reasonable requests from the supervisor. This could have consequences that you'd prefer to avoid.


I am a professionally qualified debt adviser. To contact me about starting a IVA please:?      

Edited by - IVA Adviser on 10 Jul 2017 15:42:18
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radnor12
New Member

4 Posts

Posted - 10 Jul 2017 :  22:06:21  Show Profile  Reply with Quote
Thanks for coming back to me, I am surprised to hear that as with regards to the business there is no cash surplus other than the day to day running of the business and to see that the company is ok through the leaner winter months to pay for on going advertising, bills ect (and even then i am only talking about 2000.00). But I believe a company although owned by me is a company in its own right and to take any money from it could lead to its demise and as a director I have a legal obligation not to let that happen, surely on these grounds if this was to go to court I would have a strong case.
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IVA Adviser
IVA Expert



734 Posts

Posted - 11 Jul 2017 :  09:18:21  Show Profile  Reply with Quote
Well... we cannot offer you legal advice in this forum so we'll have to set your final question/statement to one side.

If there's no significant cash surplus (or similar) in the company what's your objection to sharing the information with your IVA supervisor?

I am a professionally qualified debt adviser. To contact me about starting a IVA please:?      
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radnor12
New Member

4 Posts

Posted - 11 Jul 2017 :  10:06:14  Show Profile  Reply with Quote
I understand and it might sound like I am being confrontational about it but its the point as its me which is in the IVA and not the company, they will get to see the company profit and loss at the end of the tax year along with anybody else who wants to see it.
so if i only owned 90% of the shares would that make any difference
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IVA Adviser
IVA Expert



734 Posts

Posted - 11 Jul 2017 :  11:23:04  Show Profile  Reply with Quote
I think the key point here is that we cannot give you absolute answers to questions like these for you radnor12.

Insolvency practitioners work with some discretion to try to ensure that all parties to an IVA are treated fairly. In principle, it doesn't feel unreasonable to me for an IP to ask questions about a firm that you 100% own and control. I'm sure this doesn't apply to you in any way, but I'm sure that you can see the potential for someone else to abuse this position at the expense of their creditors?

If you've got nothing to hide, which I'm sure you haven't, then it might just be easier for you to go along with your IP's requests than to fight them on a point of principle. They're certainly not going to want to take a firm's working capital and leave you unable to earn a living.

I am a professionally qualified debt adviser. To contact me about starting a IVA please:?      
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radnor12
New Member

4 Posts

Posted - 11 Jul 2017 :  12:07:22  Show Profile  Reply with Quote
Thankyou for your time as it certainly has made me see an IVA point of view.
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