is there some hidden costs i have to pay?

[edy]

I am in teh process of signing IVA, my debts are over £16000. my IP arranged for me payments of £250 a month over 5 years which will make me to pay only £15000 which is great. my question is, what is the profit for IP, I dont believe they are doing it for free. If im paying £250 a month are they taking something from it and pay something to my creditors or there are some hiden costs i have to pay for IP?

[OPTIMIST12]

The fees for your IP / IVA Company will come out of your payments.

BUT do listen carefully to the Modifications at your Creditors Meeting - if you get one requiring a Minimum Dividend then this could mean you will have to make additional payments to meet that Dividend.

Good Luck.

[Sadsack]

Hi edy and welcome

The IP's don't make a "profit" per se - they charge for a service as would any other professional. Fees payable to the IP are normally included in the IVA payments, however, these can rise over the 5 years. The reason for this is that if they need to write additional letters etc etc, there are extra charges. If for instance a variation meeting is called for, your IP will charge for this.

I am sure another expert will be along to advise if I am incorrect in any way.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[iva experts]

Welcome to the Forum Edy,

The I.P's fees are actually apart of your monthly payment, what usually happens is the I.P will collect your payment every month and place it into a designated bank account, then every 6-12 month (depending on the agreement) the I.P will take their share for the work done and then spread the rest to the creditors.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

[Adam Davies]

Hi
Has a debt management plan been discussed with you because on those figure you could repay all your debts in just over five years if interest was stopped.Your IVA provider will be earning several thousand pounds out of your payments and will reduce the amount paid to your creditors significantly.Are you aware of the fact that you will not be able to obtain any sort of credit for six years and that your payments could increase if your income does?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp