Debt escape court cases put on hold

[plasticdaft]

I was under the impression from many on here that after year one very little money had gone to creditors and IP's had taken up a large chunk of the money that had gone into the pot.

Fully agree that some IP's(and not just one or two) were charging far too much,and that alone is perhaps why many people even now choose to hand over cash to some unregulated company to try and avoid their debts rather than use an IVA.

[ivas4us]

Correct me if im wrong but I thought the initial fees were a nomination fee which is taken in the early payments and then the IP supervisor fees are taken at the same times as creditors have there share.

[shelli 832]

No, In my year 1 & 2 statements over £8000 was taken in charges from the account leaving £180 hoped there would be some next review. A further £1500 taken for admin charges so far this year. 2 1/2 yrs in no funds and credtors paid £ 000.00.
I must be under differet rules to everone else????

[kallis3]

That does seem odd shelli, however, the creditors obviously agreed to it.

[Adam Davies]

Hi
Charging has changed with the protocol, IPs receive far less than they used to.
You have to remember that there is a huge amount of work done by IPs and their staff before a case can go to the creditors, some of these will have work done on them and never get to a meeting stage and some will get rejected at the meeting . This will result in no income at all for the IP and hence a loss.
Many IPs are actually working on a " no acceptance means no fee basis "
It is not all win win for IPs in my view
Regards

[MelanieGiles]

The fees for acting as nominee are pre-contractual and ought to be paid prior to the IVA being presented. In practice, it is rare for a client to be able to pay this fee prior to the IVA being accepted, so it has become custom and practice for the fee to be drawn down from the early IVA contributions. I am afraid that this is all perfectly legitimate.

[shelli 832]

Can you go into more detail as to the Huge amount of work involved in setting an iva up????

[Adam Davies]

Hi
I am sure Melanie or David can.
However I have visited several IPs in their practice and can assure you that the work load and above all the compliance that they have to abide by is a massive undertaking.
Regards

[plasticdaft]

I dont think anyone is saying the fees paid or the method of which the nominee fee is taken early is in any way not legitimate Mel.

Equally Shelli if you are in an IVA why dont you ask your IP to answer your query on exactly what work is done to set up an IVA. It would be unfair to lumber the IP's who use their own time to help others on here answer queries with a question that should be aimed elsewhere.

Andy,how many IP's have been made redundant in recent times? And how many IP firms have seen a rise in profits through IVAs/DMP etc?

The fact that some firms such as Melanies have such a low refusal rate shows 2 things in my opinion,firstly a dedication that shows up many an IP to ensure that an IVA is both the correct solution to a problem and that the proposal is the best for creditors,and an understanding of the systems many creditors have in place when deciding to vote yes or no to an IVA(that and a good working relationship with many a creditor).

[Adam Davies]

Hi
Not sure if I am qualified enough to answer your question, however I know several firms that have reported a steep downturn in profits in the last year due to the fee change and slow down of IVA acceptance[last year].
I agree with you in that the IPs and firms that will prosper are the ones that are fully transparant and customer focused.
Regards

[LoneRanger]

On a personnal point of view I don't think that IP fees are unreasonable.

My Nominee fee excluding VAT will be 1,500

Supervisors fee will be 15% [excluding VAT] of all realisations that will be drawn as payments are recieved by me.

Doesnt sound a huge amount to me and this still enables creditors to recieve a dividend of 31p in the pound

[Adam Davies]

Hi
Also condsider that a debt management company will actually charge the same if not more than 15% to "collect" money for a creditor. Even the CCCs receive 13%[ish] from creditors to collect money from debtors.
Fees for an IVA are no longer the issue that they certainly used to be a couple of years ago.
Regards

[ivas4us]

same fees as mine loneranger.In my opinion fully deserved, not excessive and I also believe that IP's do a lot of work in preparing an iva proposal, telephone calls with clients and creditors and all the overheads that are required just to get proposals together. I am not for one minute suggesting that any IP who posts on the forum is operating at a loss but lets be honest we all want a fairs days pay for a fair days work and both Melanie and David as I am sure a lot of other IP's certainly do a fair days work. Yes they are in business and yes they are making profit but the savings in interest alone for each successful IVA is probably far greater than what the total fees an IP receives. All credit to them.

[wonder]

You dont know what goes into the work of someones IVA so no one can really comment. To me it seems a lot of money they take out compared to what the creditors are getting, but at the end of the day if my debt is going down I dont care. Find it hard to live on whats left at times but the whole point now is learning to control spending and budget on what you have. Thats how I look at it.

[shelli 832]

Wonder that is what i ment, when I asked the question above, I just put it the wrong way I think.