Hello everyone, My hubby and I are just starting on the IVA journey. Just want a proper nights sleep

[catlover]

Hello everyone,
My hubby and I are just starting on the IVA journey and I cant wait to get it up and running as hopefully then the phone calls and letters will stop! I have been worried sick for months now and just want a proper nights sleep. We have just received our proposal from our IP and are about to sign. There are a couple of things I need to speak to them about but one thing I am a bit concerned about is the fees they are charging. They seem quite high from what I have read.

My question is: Is there any chance the proposal will ne turned down by our creditors if they think its too high? Will they negotiate with our IP at the creditors meeting? I have enough worries about it being declined anyway I would hate if this was the reason!

Thanks in advance
Linda

[Kelly O]

Hi Catlover and welcome to the forum

If you are wooried about the level of fees have you spoken to them about this?

It is unlikley that the proposal will be rejected due to the level of fees but creditors can request they reduce their fees.

How much are they charging Catlover?

[lem]

Hi and welcome Catlover, at the creditors meeting the creditors will renegotiate the fees with your IP if they feel they are too high so please don't worry about that. The main thing for you is that you are happy with the company you have chosen and that your I&E are set fairly, accurately and realistic for you moving forward, don't rush into it through desperation of getting some peace!, you are going to have to live with your budget day to day for the next few years so it's very important to ensure you have it set right to reflect your spending.

[catlover]

They are charging £4000 for nominees fees and £3222 for Supervisor fees.

Is this something I need to worry about? Or will they sort it out between themselves?

[Niobe]

Hi and welcome.

It's nothing for you to worry about. The fees are often reduced. Which company are you with?

[Kelly O]

Are you proposing an IVA over 60months?

Its very unlikely creditors will allow £4000 for nominee fees, they will pass a modification at the creditors meeting to reduce those

[Foggy]

Hi. The fees are becoming a cat and mouse game between the IP's and creditors. More often these days the creditors will request that the Supervisors fee is a percentage of realisations and they will beat the Nominee fee down as a matter of course ( which might be why the IP has "gone in high" to start with).

My Supervisors fee was a set amount in my proposal and was changed to a percentage ---- funny thing is, the percentage worked out better for my IP than the fee they were initially charging! Go Figure!

[MelanieGiles]

£4,000 is particularly high in today's world for Nominee's fees. Are you self-employed and have they spent an unusually long time in helping you to propose your IVA? If you have the usual loan and credit card debts, it is probably unlikely that that level of fee would be acceptable to creditors.

Which firm are you with?

[orchid5]

Hi Catlover once you have decided what you are going to do, i'm sure you will feel a sense of relief, i know i did once i had taken that decision and made the enquiries. Good luck, i'm sure that this will be sorted out and if your IP is a good one they will certainly negociate on your behalf and get the best deal for you, however please ensure this is something that you can afford and make sure you have put everything down on your expenditure sheet. xxxx