Hi gemgem.

The content on the following blog from three weeks ago will give you a little background to the situation:

(Blog now removed from website)

This issue is causing some confusion within the industry and leading firms to take advice. Some firms have concluded that they can carry on closing cases as usual, while others have paused while they seek to clarify their position.

Thanks TDA, I have read the blog and it does make sense, however I am just a little concerned as to how long this will go on for, so close to our discharge papers and yet another spanner in the works. does anyone have any idea how long this could go on for??

That's really just a matter for your own trust deed firm to decide gemgem. As I mentioned previously, other firms haven't seen this situation as creating any need for a delay in closing trust deeds. Hopefully that's a good sign.

Hi gemgem

When did you sign?

Personally I think this stance is nonsense. I would be interested to hear if your Trustee has stopped all feeing on all cases due to this.

Mark

I signed July 08, I will let you know the outcome.

Hi gemgem

Very generally the trustee does work on your case and charges a fee for that work plus Vat and it come from the monies held. If the ruling applied, the trustee would not charge VAT on his fees and there should therefore be more money in the pot for creditors ie higher dividend.

The point some are making is that should they proceed to close the case and the VAT thing comes about, then the trustee can reclaim the VAT paid, but couldnt pay it back to creditors as the case is closed, they are no longer Trustee and have no authority to interact with thre funds.

Personally I have closed 6 cases this week, all no more than 37 months old from commencement as we took the decision to deal with matters on an if and when basis, rather than punish those who have kept their end of the deal and made all their payments to the trust deed.

As for a time period for a decision on the VAT thing, I wouldnt hold my breath.
Mark

Thanks Mark for getting back to me, I really am at a loss at the moment, for every extra day until we are discharged our credit rating will continue to suffer, building our credit rating up over the coming years is very important to us and every day/week/month counts however this can't start until we are discharged. we made our last payment on 01/08/11 and were hoping that we would already have been discharged, the only relief we have at the moment is that we have finished paying but with this hold on our discharge its our future that is now suffering. Can I do anything at all to push to get our discharge, it just seems so wrong that discharges can be put on hold until futher notice, finishing our trust deed is not just about finshing payments, its about building a better future which is also on hold and not even in our hands.

If you signed in July 2008 then I don't see why you cannot be discharged straightaway, gemgem. Anybody whose trust deed was signed after 1st April 2008 can be discharged quite easily (Form 5) even if the trustee him/herself has decided not to seek their own discharge until the whole VAT thing is clarified.
Anybody whose trustee is withholding discharge purely because of the uncertainty over VAT and who signed after 1/4/08 might wish to query this and if necessary ask the Accountant in Bankruptcy for their opinion.

Pre 1/4/08 TDs however are not quite so clear-cut...

Thank you Kevin, I shall Call today and see if anything has changed and suggest that if nothing has changed I will seek advice from the AIB, how do I go about this if I need to?

If you google Accountant in Bankruptcy then you will get their website which will have all of their contact details.

Make sure you mention to your trustee firm that you have been told that trust deeds signed after 1/4/08 have different procedures so that the debtor can be discharged as soon as their obligations are met.

I have just been on the phone and told by my assistant that she did not understand why I was wanting the discharge so badly, that I wasn't paying and more so what was the problem, I explained it was to start rebuilding our credit and she told me that our credit would be useless for years anyway. She explained that there was nothing she could do, even though I signed after 1/4/08 and that if i really wanted to I could write to my trustee and they would try to get it to him.

I have spoken to the AIB and have been told that I should contact the governing body to see if they can help, I can't seem to find who the governing body is for Begbies Traynor.

Hi gemgem

Who is the IP and I'll check

Mark

Hi Mark its Ken pattullo of Begbies Traynor. Thank You