Fees when ending IVA early ?

[Waitingnworried]

Hi can someone please help me understand the fees the IVA company take ?

My total contribution over the 5 years would have been £22560 minus fees of £6307.20 giving funds available for distribution = £16252.00

We are waiting on our full n final settlement meeting it has been adjourned for a week.... we are hoping to pay it off 3.5 years early .. however on the proposal for the variation it still shows this

Total contribution by paying it off early would be £18060.00 minus fees of £6617.80 leaving the total available for distribution amongst creditors to be £11442 ?

I read a few other posts and by paying it off early do the IVA company still take all of their fees ? From what I understood they had to take a cut on their fees as they would no longer be representing us if it was accepted ? I just don't understand how they can take all and a bit more of their total fees and the creditors get less ?

[Foggy]

Hi. The way I read my proposal is that the supervisors fee is a percentage of the money paid into the IVA pot, so if the IVA finishes early they still get the percentage (on the other hand, if I have a windfall, so does my IP).

This percentage arrangment was put forward as a modification by the creditors themselves. I gather some proposals ( especially older ones) state an hourly fee, which will then be reduced by early settlement.

[kallis3]

I'm not sure what happens if the IVA finishes early - I don't think they will take the full amount as some of it is for administering the IVA from start to finish.

The creditors are pretty much the ones who agree what the fees are going to be and if they're not happy then they will cap them.

I'm always of the mind that as long as the creditors are happy, I really don't care how much my IP gets as they have looked after me for the term of the IVA. They're worth it.

[plasticdaft]

You would have thought that ending an iva 40 months early would mean less supervisors costs but iva's are just that,individual, so question your own companies figures. Mistakes to happen.

Paul

[MelanieGiles]

The level of fees payable will be dictated by the terms of the specific arrangement. It is more usual to see fees based on a percentage of realisations these days than fixed, so you may not see any saving if you settle the IVA early.

[Waitingnworried]

Thanks everyone. Just read through terms etc of agreement and saw they are charging £1000 for the variation meeting !!!!!

[MelanieGiles]

I doubt very much whether they will get a fee at that level approved. The going rate for variation fees now is around £300.

[liamjames]

Thanks everyone. Just read through terms etc of agreement and saw they are charging £1000 for the variation meeting !!!!!

Mel is right - unless this amount was stipulated in your proposal then your creditors will probably limit it.

[plasticdaft]

Haha £1000 for a variation meeting. They are having a laugh!

Paul

[MelanieGiles]

Probably just living in the past Paul. And in reality the cost of putting one of those offers forward probably does cost in that region.

[Waitingnworried]

Well everyone we got the phone call and the F&F was accepted !!! We are so relieved

[pod_moo]

Excellent news! I bet you are very relieved and I wish you luck and happiness for the future! Sx

[kazzafunk]

Brilliant news! I bet you are over the moon. May I ask how much was accepted?

[nepensioner]

What a relief for you waitingandworried, so pleased for you..

[kallis3]

Fantastic news - congratulations!!!