Worry that our IP is really helping us?

Discussion in 'Insolvency' started by allworkandnopay, Dec 2, 2019.

  1. allworkandnopay

    allworkandnopay UKBF Newcomer Free Member

    9 0
    Hi Everyone,
    Our company called in a national insolvency company to prepare a CVA application at the end of July.£30k and 3 months later they filed the application but almost immediately it was rejected by HRMC with a letter stating that they felt we could pay creditors more p in the pound and that their records indicated that we had been having difficulties since 2017.
    We have had a couple of time to pay arrangements in this period but they had been fulfilled and we had always communicated well with them. Our IP said not to worry, they would increase the offer and explain that 2 years of hard times were balanced with 30 years of having no problems.
    It amazed me that it had taken so many calculations of the amount we could offer to pay in the pound yet we could increase this figure overnight but if thats what it takes to save a lot of jobs we would take their advice.
    Our first creditor meeting was postponed to wait for HRMC to reconsider.
    We have just received a call from the IP to say that the second proposal has been rejected' because we did not address the reasons in the first rejection'.
    We did not see the letter from our IP that went to HRMC but it seems that there is some sort of negligence on their part? Our IP practise have gone to have an internal meeting and wont discuss it further with us. We are 48hours away from what now looks like a fatal creditors meeting, can anyone give us any advise at all as to what we can do? is it worth trying to speak to HRMC ourselves?
     
    Posted: Dec 2, 2019 By: allworkandnopay Member since: Nov 19, 2019
    #1
  2. The Byre

    The Byre UKBF Legend Full Member

    9,985 4,062
    IPs are not there to help you - they are there to help themselves.
     
    Posted: Dec 2, 2019 By: The Byre Member since: Aug 13, 2013
    #2
  3. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,519 446
    Hi

    You should ask to see a copy of the IP's report to HMRC regarding the variation.

    You can complain further here:

    https://www.gov.uk/complain-about-insolvency-practitioner

    but ultimately they should have told you that HMRC (presumably) had the swaying vote and that there was no guarantee they could get the CVA approved as it would be up to HMRC to vote in favour of it, depending on their voting power.
     
    Posted: Dec 2, 2019 By: Lisa Thomas Member since: Apr 20, 2015
    #3
  4. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,519 446
    You should also have been provided with a copy of their Nominees report - this will explain whether or not the IP recommended that the CVA was attractive and should be considered favourably or not.
     
    Posted: Dec 2, 2019 By: Lisa Thomas Member since: Apr 20, 2015
    #4
  5. allworkandnopay

    allworkandnopay UKBF Newcomer Free Member

    9 0
    Thank you Lisa, I have asked for the report. They always advised us that HRMC had the swaying vote but from day 1 told us that we were a perfect applicant for a cva.
     
    Posted: Dec 2, 2019 By: allworkandnopay Member since: Nov 19, 2019
    #5
  6. Lisa Thomas

    Lisa Thomas UKBF Enthusiast Free Member

    3,519 446
    You may well have been but HMRC do not always make a commercial decision.

    You need to see the Nominee report and the reasons for rejection from HMRC.
     
    Posted: Dec 3, 2019 By: Lisa Thomas Member since: Apr 20, 2015
    #6