A question.

[Chris.z]

hi Just a question that will probably be best answered by the experts... I know 25p in the pound is quoted as the minimum accepted in an IVA proposal but on this site I have seen some accepted with less - Is this possible? Also is there a cap on what IVA companies charge? Also is there a minum amount that is accepted for an IVA ie 200 a month etc etc. Asi have seen some that seem to be lower??

Chris

[Adam Davies]

Hi Chris
The answer is that there are no set minimums,just a general guidline.
A forum member had an IVA accepted last week for a 17p dividend and payments of less than £200 per month.
As far as fees go there is a general cap at 40p of money paid into the IVA,my own was capped at 35p.However these days fees are set at the start of the IVA and tend not to be changed and they are far less than 40p in the £.
The average IVA costs about 8k in IP fees etc but you may well see this squeezed over the next few months[Capital One wanted to limit fees to 4.5k]
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

Hi Chris

Anything is possible in the world of IVA's it just depends on whath the creditors feel is a sensible offer on the day. There is no real cap on what IP's charge, but again creditors will modift fees if they feel that they are too high, and the norm seems to be moving towards a percentage of realisations. There is also no minimum contribution, although most IPs would limit their criteria to £200 or more. There are clearly some who will take lower contributioms as evidenced on this site.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Chris.z]

Hi and thankyou for those answers - Another question then ( or two )!! Does that mean that some IVA's get turned down because companies charge too much in fee's ?? Also if , and my maths isn't too good, if I owe 26k am paying 240.00 a month for 84 months and that males a dividend of 23.44p in the pound - What would be my IP fee's be? If that makes some sense at all!

[Adam Davies]

Hi
On your figures you are paying in a total of £20160 and returning to creditors £6095[23.44 percent].Your IP fees would be £14065.
Your right some IVAs will get turned down due to economics.
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Chris.z]

Thanks Andy does that mean that people can get turned down by 1 company then get accepted by another due to the disparity in fee's?

Regards

chris