considering a full and final iva

[sarah_nick]

Thanks for your response Andy,

I know exactly were your coming from with regards to the fee's.

Is this normal play then, for the IP to reduce their fee's when taking F&F or is this different for each IP????

What dividend would this give and have you known anyone in a similar situation?

Thanks for your help.

[MelanieGiles]

I would say that the offer of £10k is on the low side, as there is £19,250 outstanding in terms of contributions. This should be discounted on the basis of future IP fees - but do expect to pay a variaton fee for your IP having to call creditors meetings. I do not think that it is fair to take account of the additional contributions you have made, given that if the arrangements were to run their course the creditors would get this on top of your original offer. I suggest a figure of £15,000 would be more reasonable.

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

[sarah_nick]

Hi Melanie,

Thanks for your reply, I must admit not taking the additional contributions into account is a bit of a blow to me!! - but I trust your advice.

How long does the whole process take and have you dealt with a similar situation before, if so what was offerd??

Thanks

[Adam Davies]

Hi
I do not agree with Melanies reduction of fees of just £4200 over three years for two IVAs,thats just £700 per year.Check your original proposal and see what fees they were charging for the year and I bet its in excess of a £1000 per year
At the end of the day you need to offer the same dividend as per your proposal or a little bit more.
regards


Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[sarah_nick]

Thankyou both so much for your time, it means a hell of a lot to me at the moment.

Andy,

The original proposals detailed fee's as:

Hubby
nominee's fee's £1,670
supervisors fee's £3,140
VAT £842
Out of pocket expenses £350
cost of covening meeting £130

Total £6132


Mine

nominee's fee's £1960
supervisors fee's £3670
VAT £985
Out of pocket expenses £350
cost of covening meeting £130

Total £7,095

But a modification was added in the meeting, whereby the superviser was to receive 20% of all realisations + Disbursements and VAT into the arrangement.

I am not really sure where I stand with the fee's???? Will I still receive a discount for ending early or will it still be 20% of all realisations??? They have already deducted the nominee's fees as per my annual statement.

Sorry to keep harping on, but I need to make sure I offer a sum that stands the best chance of being accepted. So I can put pay to this horrible mess and move on with my life.

[MelanieGiles]

Your IP is entitled to charge 20% fee on all realisations into the arrangements. This will include the lump sum you are proposing to raise.

On the basis of the figures you have both paid in to date - ie £13,750, the nominee is entitled to nominee's fees (inc VAT) of £4,265 and supervisory fee (inc VAT) of £3,231. If you pay over £10,000, he will be entitled to draw £2,000 of that leaving £8,000 plus the balance of monies held of £6,254 to your creditors - possibly even charging and additional variation fee, although I think that would be rather churlish.

If my reckoning is correct, and with debts in excess of £75,000, I think you are far away from effecting anything like the return you originally pledged.

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

[sarah_nick]

Hi again,

I've just come off the phone with the IP and they are willing to put forward a F&F of £15,000, over both arrangemnts.

This would give a 24% dividend from both arrangements (originally offerd 27%) but, this is without May's payment due out tommorrow - so I am hoping more in the region of 25%.

Shall I go for it!!!

[Adam Davies]

Hi
You should go for it.
I am concerned that you are only getting a £1500 reduction on the total amount that you would be paying in over the full term even though you are ending your IVA three years early.
Your IPs fees of 12k,to me,seems rather high.
Interesting that in the Mail On Sunday this week banks are looking to cap IP fees at 4.5k rather than the average 8k.
I hope it is accepted for both of you
Good Luck

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

I think this is a good offer, and one which your creditors will seriously consider.

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

[sarah_nick]

Thanks for your advice

One more thing ....

How soon after the completion (if all goes to plan), can we apply for a mortgage - I have heard 6 months and then 3 years to get back to high steet rates?.

Not that I am going to rush into it with the dreaded property bubble set to pop at any given moment!! that would be a classis case of `out of the frying pan and into the fire`!!!

Thanks for your help - I will keep you updated

[MelanieGiles]

Those timescales are not unreasonable.

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