Hi guys/gals A question about fees

[Al19812008]

Hi guys/gals I need an answer to this ? Why are the insolvency practitoners fees so high? I was told it would be a one off fee drawn after five months payments that's roughly 1000 for me then they add vat a variation fee a super visor fee a nominees fee and then disbursements then further down the line they start charging more it's come to nearly 9000 pounds that I'm hvobv to pay them I want to get out of debt not have more to pay!!!!!!

[Niobe]

Hello,

The fees are for them to administer your IVA for its entirety. The creditors agree to these fees - if they're not happy then they ask that they are lowered.

All I can say is that you would have paid a lot more in interest and charges and been hounded by your creditors if you hadn't done an IVA.

No company is going to work for nothing.

[Broke of London]

The fees won't be any higher than those agreed by your creditors and you at the start as you would have signed to agree the terms agreed at the creditors meeting. With a dividend of 40p/£ you aren't paying your fees - your creditors are paying them out of the write off - so I wouldn't worry too much about the fees. I'm with VN too and with an estimated dividend of about 75p/£ I am only just touching on paying the fees myself. But think about it this way...without the £9k fees, how much more would it cost you to repay your debts in full plus 80 months of interest, fees and charges?

[footiemad]

Our total fees are around £15,000. Monthly payment £1,026 plus any uplift (which is quite a lot). However, I was paying approx £3,000 pm before the IVA and the balances were not reducing. So as you can see, from that, I am not complaining because after 5 years my balance will be NIL and not £125,ooo plus x

[Adam Davies]

Hi

All fees drawn by the insolvency practitioner are agreed and authorised by creditors and will not have any affect on the monthly payment made by the debtor.

Regards

[kazzafunk]

In my opinion, the IP's can charge what they like! It makes no difference to the person in the IVA as it's all agreed with creditors and is just part of your monthly payment.

They are not going to work for free. They take and process payments, conduct annual reviews, deal with all enquiries throughout and also the administration of additional payments due.

In my view they are worth it as they negotiated the write off of a lot of our debt and managed to get a f&f offer accepted.

It's not worth looking at the bit about fees. As long as you accept the monthly payments that's all you have to worry about.

[Al19812008]

thanks for the replys its nice to know there is other people out there with debts!