The cost of the IP fees are relevant as it ultimately reduces the dividend that creditors get - so higher IP fees = a bigger risk that the proposal will be rejected in the first place. When my case was transferred from one IP to another the fees increased by a staggering 533%. Had those levels of fees been included in the original proposal, rather than just the last few months, it would have reduced the dividend to the creditors from around 72p to 60p, which could well have resulted in the proposal being rejected.
These days the IP fees tend to get capped by the creditors at the meeting.
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 disagree Vince. As said before, the fees get capped by the creditors, and it they agree to them, then so be it. At that stage the IP is caught between a rock and a hard place ... having done a lot of work, for which he will get nothing if the proposal fails, he is almost forced to accept reduced fees in order to get some return.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The fees are capped - I have no problem with the fee I am paying. My creditors are happy so no worries here on that score.
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
Creditors do indeed cap fees and make it extraordinarily difficult for hard working and diligent IP firms to make it cost effective to help people. If independent firms leave the market, then you have to ask yourself what will that leave?
I cannot really make too much comment on that myself, but if there are no independent firms then it stands to reason that the debtor will have very little choice other than those organisations that creditors point them to.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
The level of proposed fees is never a reason for creditors to reject an IVA proposal. They may object, but it is very unlikely that an IP would walk away from a case, simply because they did not agree to the fee cap. We all know it is generally going to be applied, regardless of the amount of work we all have to put in.
I dread to think what would happen to consumers if it were left to the "free" and "charity" markets - no harm to those firms who work in that area, but they would not cope with the workload. Tell that to the BBC!
The "free" and "charity" markets still get fees of similar magnitude, even if they refer to them under differenr terms. No firm can run on hot air alone !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
