INS10415 - Monitoring VAs

Post VA monitoring: types of post

Introduction

It is important to identify the type of correspondence by its content. In letters, as content may not be very clear, highlight headings, different subject lines and time limits hidden in the middle of text.

Hints and tips

• The words Rule 5.26(2) Insolvency Rules, 1986 and a report attached is the Supervisor’s Annual Report
• An interim report may just be a letter, or it might have a heading stating it is.
• Notice of Creditors’ Meeting will probably have a proxy attached. There should be a date, place and time stated in the letter. (The time limit to deal with it might be short.)
• A letter about a dividend should say what part of the debt it is for, the amount of the cheque payment and the proportion of the claim being paid as a dividend. (Make sure that the allocation made is correct and based on your actual claim.)
• Requests for your claim may have a time limit. (Lodge it or lose it, so make sure the claim is dealt with in good time. If there are problems because of a late return by the debtor, contact the supervisor and negotiate an extension. You may need to consider an estimation (PAYE) or determination.)
• Request for funds: this may be to enable action to petition for bankruptcy or some other action. It may be for approval to draw more fees, in which case a proxy will usually be attached to the letter. (The case will need to be referred to a C2 Team Manager or Casework Manager.)

(There is more information about letters and correspondence in the EO Manual Chapter 6 Contact with the Taxpayer ( (This text has been withheld because of exemptions in the Freedom of Information Act 2000)+).

Annual reports

The Supervisor’s Annual Report must be sent to creditors within two months of the anniversary of the arrangement. It may clearly say it is a Report under Rule 5.26(2) Insolvency Rules, 1986 and have a cover page, or it may just be in the form of a letter.

It should include the Supervisor’s

• receipts and payments account (if it is not attached, ask for a copy)
• comments on the progress of the arrangement.

• Check the report to see that

If any of these are in breach, contact the supervisor to request that the arrangement is brought up to date

• Note IDMS (and SA Notes if appropriate)
• BF and set Next Action ‘Await Response’.

If no action is taken by the supervisor or debtor to bring it up to date and the arrangement continues in default

• Request the failure of the VA.

If the report is satisfactory and there are no points or discrepancies (other than minor, unimportant ones), or the arrangement has been brought up to date

• Note IDMS
• BF and set the Next Action to ‘Await Annual Report’.

Nominee and supervisor issues

Fees and remuneration

From 1 October 2004 a Court Practice Statement governs the fixing and approval of Insolvency Office Holder’s (appointee’s) remuneration. It aims to ensure that courts fix or approve fair and reasonable remuneration commensurate with the nature and extent of work properly undertaken by the appointee by reference to a consistent and predictable process.

An appointee or creditor can make applications to the Court when remuneration has not already been fixed and approved.

Appointees filing or responding to an application must comprehensively detail all work done or to be done and show they have consulted all interested parties or explain why they have not.

If you receive notice of an application to the Court

• Refer it to your Manager or Process & Strategy Technical Adviser.

When you consider that the nominee’s or supervisor’s fees are excessive

• Ask that they justify them by reference to the same standard of evidence that the Court Practice Statement requires.

Variations

A 'variation' of a VA is a proposed alteration to the original proposals.

The variation letter should include

• the proposed variations
• the date, time and place of the Creditor’s Meeting and
• enclose a proxy form
• similar financial information as required to support an original VA proposal.

Complaints

Post which is a possible complaint must be marked ‘P to Ex’ and dealt with immediately.

Speak to the Examiner, Team Manager or Casework Manager if the case is not available straightaway. See the EO Manual (This text has been withheld because of exemptions in the Freedom of Information Act 2000)+.

The case may need to be dealt with by the Manager or the Complaints & Redress Team.