I had a feeling that was the case and I'm sure it's in the small print somewhere, but your average Joe can't make head nor tail of most of the paperwork put in front of them when the IVA is being set up.
I don't see why the supervisor should get 100% of their money if an IVA fails. The reason we did an IVA instead of opting for bankruptcy was because we wanted to ensure our creditors got as much of their money back as possible.
It really hacks me off that the IVA company creamed off all the money we paid in and gave our creditors next to nothing. I could have come to an agreement with my creditors myself and had a better result than this.
It seems to me that the only people who really benefit from an IVA is the IVA company themselves and that is why I won't be proposing another one.
I've learnt some valuable lessons during our IVA. I am now in the process of dealing with our creditors myself, which is what I should have done in the first place to ensure THEY get their money back.
Hi
I welcome an input from the someone looking at the other side of the coin.
It is unfair to expect an IP to propose an IVA and then not get paid, many IVAs never get to the meeting stage or are rejected so the IP fails to receive any income.
Fees have changed for IPs and I think they have almost swung the other way.
Is it not true that bankruptcy costs and fees are deducted before creditors receive a penny ?
Hi
I think they will receive their nominee fees and supervisor fees upto the point that the IVA fails. It is tough on the debtor as they are back at square one with almost the same debt level.It is very important that people go into IVAs with their eyes wide open, I think the industry has been guilty of rail roading people into IVAs in the past and hopefully this has now changed
Regards
Exactly the IVA route is like climbing a Snakes and Ladders board 60 to 72 squares long if you are lucky you may get to the top unscathed however many hit divorce, illness, redundancy,reduced income, these are the Snakes heads which send you swiftly back to the beginning at least the bankruptcy board has none of these every month no matter what you jump to the next square, 12 to 36 squares long with nothing to get in your way, I am not avoiding your question sprowston boy I hope this thread will eventually give you the answer
I'm not blaming the company for the failure at all. It failed and both ourselves and our creditors are back to square one as a result.
It just annoys me (a lot) that despite the failure of the IVA the IP received ALL of their money while everyone else lost out.
Why should they get 100% and the creditors next to nothing?
I actually feel really sorry for creditors in all of this. People moan about them all the time, but it's not unreasonable of them to expect to get their money back.
IVAs don't really suit anyone apart from IVA companies. Creditors lose a stack of money, the debtors see a very large amount of the money they pay in going to people other than the companies they actually owe money to and being in an IVA causes all manner of other problems along the way.
As I say, I'm now dealing with my creditors directly and it is good to know that the money we owe is actually going to the people we owe money to instead of a huge chunk of it being wasted on some third party.
When I was BR I asked the same question on the forum and Ian Millington replied. Bear in mind this was 3 1/2 years ago but I'm sure fees won't have gone down!
I paid £485 in BR fees and my IPA was originally for £185 per month and this is Ian's reply:
All right Skippy, you wanted to know! here is what your IPA buys:
Contributions 7181
CW fees 5%+VAT 675
Available 6506
Balance of OR admin fee (after £300 deposit) 1415
OR Realisation Fees incl VAT 1559
DTI Ad Valorem Fee (Bank Charges) 5181 x 17% = 880 (+ £15 every 3 months IIRC)
OR distribution fee about £260 inc VAT
To Creditors £2200 approx.
Even Melanie on this forum has agreed the failure on IVAs is between 30% to 40%, now when they fail its usually around year two, by that time most, if not all of the supervisor and nominee fees are in the Pot for the IVA company to collect their fee, if it were not like that there would not be any IVA companies for proposals to be made. So the current failure rate is not that bad, financially for the IVA companies but not good at all for the creditors, but then again they only accepted the proposal in the first place because the IP acting as nominee has convinced them they get next to nothing in bankruptcy, thats why in the proposal bankruptcy figures appear next to the IVA figures.
I presume bankruptcy assist firms also take their fees before the creditors get anything?
No difference really in my book. The creditors are happy with the fees charged and when they get paid, otherwise there are modifications and the fees are lowered.
If my creditors are happy with what I am paying back and what I am paying the IP to do for me, then so am I.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I'm getting confused. Most bankruptcy assist companies i've had letters from promise to save me money and make me debt free quicker. If this isn't by paying back less money to creditors then how is it done?
I don't know how these bankruptcy assistance companies work, but I imagine it's in a similar way to IVA companies.
In any case, bankruptcy fees are quite a lot of money to find up front, so that wouldn't be an option for me. If I could lay my hands on more than £1000 to pay for me and my partner to be made bankrupt I wouldn't be in the financial mess I am in.
It's so nonsensical that you are expected to find such a large sum of money to basically declare that you have no money!
