I need to do a variation meeting on my IVA but they are charging me £1000.00 + vat to do this. Can they do this?
Also can I come out of my IVA and manage my finances directly. I have spoken with one creditor who will accept a partial settlement and one of my other creditors is no longer chasing for payment as they no longer trade and have noted on my credit file as settled. so my debts are now £4000 lower. I just want to make sure that the IVA cant file for bankruptsy if I have cancelled it
I do know that they can charge fees to set up a variation meeting, but I don't know whether this is an excessive amount or not.
To come out of the IVA, you will have to let it fail by not making your payments for three months. You will then be back to square one with creditor hassle, but you can then negotiate with your creditors.
Unless there is something in your proposal which allows for BR, then it is unlikely that your creditors will make you bankrupt.
Why do you need a variation? Are you unable to make the payments?
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Variation meeting fees are sometimes agreed by creditors at the start of an IVA, however it is more usual for them to be agreed as part of the variation. Individual firms will have differing methods of calculating the charges, which will be clearly disclosed to creditors within the variation documents.
The £1,000 that you have been quoted seems excessive. My firm charges £250 and in any event it is your variation and crediors could restrict the level of variation fee charged in response to the variation. Who is your IP or which firm is handling your case?
Last edited by David Mond on Sat Feb 07, 2009 8:56 am, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I can no longer meet my monthly payments as I have just had a baby and my expenditure is higher.
My IVA is with Ideal Debt Solutions.
One of my creditors is no longer chasing for payment and has registered the debt as settled as they are no longer trading and I have confirmation of this in writing.
I have spoken with another creditor who will accept a partial settlement which I will be able to afford as this is a small debt.
My other debts have been taken over by Max recovery and they advised that they will set out a payment plan for me.
I just really begrudge paying thr variation fee which is extending the IVA for a further year along with the 7 months that I have been on maternity leave.
Ideal Debt have taken confirmation from me to cancel my IVA and I haven't missed a payment.
Hi
You need to consider the protection that your IVA gives you from your creditors.If you stop it now you will leave yourself open to creditor pressure.
As David states the variation charge may be restricted by your creditors and, unless you are returning close to 100p, in the £ it is your creditors that will be paying for the variation.
Think carefully before jumpin ship
Regards
