IP fees

[rickyg33]

do the IP fees always come out of the money available to the creditors?

thinking of a full & final offer - if you can raise, say, 40% of the debt from equity as an offer, do the IP fees then come out of that 40% pot? effectively, that reduces the 'offer' below 40%

rickyg

[size5]

Yes, the fees would come out of your offer pot, the good news there though is that a reputable IVA provider would only charge a nominees fee, there should be no supervisor fees.
As ever, go to www.iva.com and look at the reviews, and make sure that you speak to at least 2 or 3 firms.

[rickyg33]

What would a 'nominal fee' be?

Is it decided/agreed between the IP and the creditors, similar to the 5 year IVA?

rickyg

[ianmillington]

I'm not sure I'd agree with that.

There is a cost involved in the realisation and distribution of the fund to the creditors, and the statutory reporting function. There will also be the same obligations on the Supervisor to register the IVA. Whilst the fee shouldn't be very much, hundreds rather than thousands of £s, I can't see anyone doing the post-appointment part for nothing at all.

Ian

[size5]

Nominees fee and the amount taken will depend on which IP you approach. Full and finals would generally only be proposed if you have no disposable income at all to offer the creditors on a monthly basis.

[size5]

Can only speak for myself Ian, full and final cases we generally don't charge supervisor fees on.

[size5]

Can only speak for myself Ian, full and final cases we generally don't charge supervisor fees on.

[rickyg33]

size5

It sounds like you are a 'practitioner'.

Have you got a web link, or email, or similar method of establishing contact? I have had some guidance from one company, but we're looking round to compare services.

Thanks,

rickyg

[ianmillington]

I think the value of the overall package is the thing here. So long as there is transparency and both debtor and creditors are seen to be getting value for money, then everyone is going to be happy.

I think the days of any IP charging excessive fees are well and truly gone. The overall price is going to be the same anyway, because the creditors will control it, whether we call it nominees or Supervisors fees. So I think it's a moot point as wherever you go, the fees will probably be fixed in the same amount. Make sure you don't go to one of those IPs who charge you the nominees fees win or lose, which they are, in fact, legally entitled to do. So check it's no win/no fee first.

Ian

[size5]

I don't have a link as yet, but I am looking into setting one up.
The reason I haven't done so as yet is that I have always used this forum to try and help and to interact with real people (and my peers from other organisations) not to, in effect, drum up business.
As a hint though, if you go to www.iva.com and look at the most reviewed list, we are 2nd on there and our reviews are excellent!!

[size5]

I NEVER charge anyone a fee until successful completion of creditors meeting, and I agree that the days of excessive fees are gone, good thing as well in my opinion.

[rickyg33]

This is the actuality of the situation....

the house value is about £210,000
current mortgage balance is £121,000 plus £3,700 early repayment fee

looks like we can remortgage to 75% of the value = £157,500
this would release equity of about £32,800

solicitors fees for remortgaging is about £1,000
leaving £31,800 to offer creditors

have been advised from one practice that IP fee would be about £3,000

total debt is £97,000

£31,800 = about 33% of total debt

if the IP fees come out of the £31,800, the 33% is valid
if the IP fees are considered to come out before offering, this reduces the offer to £28,800 = just under 30% of total debt

once the bigger mortgage is in place, this effectively leaves almost nothing available on a monthly basis to offer on top of this to creditors, which is why the solution was provided

any thoughts?

rickyg

[size5]

£3000 sounds a little high to me, anyone else any thoughts?

[abc]

The total of Nominees and Supervisors fees will depend on a number of issues. How many creditors for example! I think £3,000 including VAT and disbursements is very cheap, in fact too cheap for an IP to do a proper job within the regulatory framework that we work in.

[size5]

Whilst I think that it is good that the IP has been honest and open re fees, and whilst I also agree that each case is different and therefore costs will vary from case to case, as a guide