Andy Davie comments on what TIX means to the debtor
Andy Davie, site manager for IVA.co.uk, the UK’s biggest online IVA community for information and advice about Individual Voluntary Arrangements (IVAs), on what the TIX fee structure changes mean to the debtor:
“On the IVA.co.uk Forum we are receiving over 50 questions a day from confused consumers who feel under informed about IVAs. Debtors are being caught in the crossfire as banks and Insolvency Practitioners battle it out. The idea that fees will now be paid in proportion to monthly contributions (i.e. the debtors disposable income) may sound like a positive thing, but with the 15% cap in place, Insolvency Practitioners may be unwilling to propose IVAs where the monthly disposable income is low and the consumer will ultimately lose out.
For example, where the monthly payment is £200 the IP will only receive £1,800 over 5 years, whereas they will receive double that for a £400 per month IVA with exactly the same workload. I can envisage a two tier IVA system, with ‘IVA factories’ proposing low monthly, straightforward IVAs and turning away cases that are not clear-cut, while smaller independent IVA providers propose these slightly more complex cases only if the monthly IVA payment is high. This could leave some people who would previously have been eligible out in the cold.”
A more detailed look at the impact of TIX on consumers can be viewed here:
http://www.iva.co.uk/articles/index.asp?id=656
Please post any news stories about IVAs here:
http://www.iva.co.uk/forum/default.asp?CAT_ID=5
See my Blog:
http://ivanews.blogs.iva.co.uk
