IVA F&F settlement proposal - concerned about incorrect creditors

Hello,

So I've been working on a F&F IVA lump sum settlement with a windfall payment from a family member. The proposal has been drawn up, approved by me and is now in the process of being sent to creditors.

I've started going through some old paperwork now my I'm mentally starting to feel a bit more together, and realised some of the debt owed to different creditors may have been purchased by another company. I know this common in the industry.

The company who I'm working with to put the IVA proposal together used my credit report to assemble the list of creditors. The balances and account numbers generally matched what I thought was correct, with the correct number of debts and creditors owed too.

But I'm concerned two of the creditors on the IVA proposal may have actually sold the debt to another company. I've called the companies but they wouldn't tell me if the debt was being serviced by a third-party or had been sold to a third-party. For these two debts I don't have the original letters any longer stating what happened with the debt (i.e. it was sold, or was just being managed by a third-party).

How will this affect a F&F IVA proposal and creditor meeting vote/date if a couple of the original creditors listed sold the debt on, and the correct report hasn't been updated to reflect this?

The offer proposals have already been sent out.

Thoughts?

Thanks,
AR.

Comments

  • If the original companies listed don't own the debt any longer, then they will normally inform the I.P. of same on their voting form. If necessary, an adjournment period of 14 days can be used to get the forms out to the correct creditors and allow them a vote. They may want you to do a 3 way call to the creditors, who will then normally give the necessary info to the I.P's staff.

    Any concerns, speak direct to the I.P. firm.
  • Craig1981
    Craig1981 Posts: 769
    First Anniversary
    Forumite
    have you checked your credit files?

    whoever has bought the debt should now be reporting it, so you should have an idea of who bought what
  • It isn't a huge problem, as you say it is common practice to sell debts on in an IVA and there are processes in place (as noted above). Checking wit your IP if probably the best thing to do.
  • My F&F IVA was approved. HMRC even voted in favour which I'm told is rare as they usually abstain?

    There were some modifications passed:

    "Once the HMRC final claim has been admitted, any dividends due to HMRC shall be retained by the supervisor and paid as one single payment at the same time as the supervisor issues the notice and final report."

    "A) (Time Limit) No time limit for lodging claims shall apply to HMRC. It shall not be possible to conclude the arrangement until such time as HMRC's claim has been admitted in full or HMRC has confirmed in writing that it will not lodge a claim."

    "B) (Dividend prohibition) No non-preferential distribution shall be made until the HMRC Final Claim has been submitted and the supervisor has admitted the claim for dividend purposes."

    Item A is the one that concerns me (Time Limit). I presume it's standard conditions HMRC requires to vote in favour? What does that mean in practice?
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