A worried beginner

[helsbels]

I am just beginning an IVA and waiting for the paperwork to sign and get the creditors' meeting started. I can't help questioning what's the catch? What does the IP get out of this? and while I'm waiting for the meeting and not making any payments, what if they say no and then I'll owe even more money?

[aguise]

Hi there try not to worry. I felt exactly the same . Its not an easy journey but much easier than struggling with bills in a neverending downward spiral, at least there is an end. Dont worry about if they say no try to be positive. The Ip fees will be on the proposal and are built in to it that is how they are paid for the invaluable work they do, in effect the creditors pay for the iva fees as it reduces the amount that they get back.

All the best keep us up to date and ask any questions you may have.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[MelanieGiles]

Hi there

There is no "catch" - a voluntary arrangement is a properly supervised arrangement to pay your creditors what you can afford over a realistic time period. The deal is that you work hard for the next five years to make the payments to your creditors, and if you comply properly the balance owing is then written off at that time.

The IP gets paid for his/her work in initially representing you, and latterly supervising that you comply with the arrangeement, collecting your money and paying creditors.

If creditors say no, then you have not really lost anything, as the interest would have accrued in any case and if you choose to then go bankrupt, it is all written of in any case.

You are sounding a bit sceptical of the process. Have you had a proper meeting with your chosen IP yet?

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

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Cybus]

Would I be correct to assume that you have had the IVA proposals through and signed and returned them (After thoroughly checking them of course[:)])to your IP?

If so, you are currently awaiting a date for a creditors meeting.
There ought to be no catch.

The IP should get nothing out of this until such a time the arrangement is approved. If it is not approved and you have paid money up front, it depends on the contents of the engagement letter whether the IP is entitled to return those funds to you or whether he is entitled to retain those fees for services provided.

If you have not paid anything up front, I would recommend that you resist the urge to go out and spend the money on other things, that you would have saved by not making the minimum payments to your creditors this month.

It will not be easy, but if the arrangement is not approved, at least you will then have something to keep your creditors at bay for another month whilst you consider other options.





Tell it like it is.