IVA Advice bureau

[ivas4us]

Tamzin, I think the creditors can ask for the IP fees to be lowered but not completely sure.

[crow]

I have a together mortgage ....I had to make my payment tonight but did not pay unsecured part of the loan. I was asked why I was short paying and had no choice but to tell them I am entering into an IVA. I hope I did the right thing!!!

[ivas4us]

It is fine to let them know whats happening, they will find out when the propsal is sent out to them. Is it with Northen Rock.

[crow]

What gave it away? The together bit Yes it is!

[ivas4us]

sure did. I hope you get it all sorted but there is no reason why it shouldnt be fine. I have not seen anybody on the forum having NR as a creditor and not have thier IVA's approved.

[crow]

Thats why i went with Melanie Giles as some other IPs said they would find it difficult with NR. I was assured by MG that NR is not a problem for them. The only issue is that NR might want a 6 yr IVA. The way i see it, what diffrence is there by adding another 12 months if you can get a new start in life...a second chance.

[crow]

Anyway, thanks to all for your advice. I must say goodbye before my family think i am ignoring them.

[ivas4us]

you will be fine, yes I have seen that NR go through everything with a toothcomb to see what is the best option for them getting thier best return but in the end a solution is usuaaly found. Good luck you are in safe hands.

[MelanieGiles]

I have just returned back to the mainland UK from my office in Northern Ireland to read this thread which is directed at my firm.

My fees are based on the basis of charges that I realistically incur in presenting proposals for my clients - and are in line with current industry standards and fees charged by other reputable firms. Other firms may well charge a lower or higher fee, and it is a free market for anyone thinking of entering into an IVA to choose the best provider that they perceive will work for them.

Cheaper is not always best. Many posters on this forum have not even spoken to the IP handling their case, or are not getting a great service once the IVA is accepted. Others will always strive for the most excellent standard of client service - both to the individual and their creditors- demonstrated by their acceptance rates at creditors meetings and the rate of drop-off post appointment.

To answer ivas4us specific question - if the nominee's fee is lower or even if none were to be charged at all, this could ultimately result in a higher dividend for creditors - in which case they will reduce the fee accordingly if they are not happy with it. In reality, nominee's fees across the board run at approximately £1,750 on average, due to the constant modifications put forward by creditors. Creditors make it clear that they do not judge on the basis of fees charged alone, but in the main on the quality of the IVA proposals, the standard of work put in prior to the creditors meeting, and the IPs reputation for delivering dividend payments as soon as possible. I have cases in my portfolio with nominee fees as low as £800, and as high at £10,000 - as I do not purely work with simple consumer debt cases. Can I suggest if you have any more questions about IP fees, and the basis of their calculation generally, you quiz your own IP.

Turning to Crow's specific query, the letter does make it clear that the fees eventually to be charged will be drawn out of the contributions paid over, and if you have any specific queries about any of the aspects of my firm's engagement letter which are not clear, I will be very happy to discuss them with you directly. So don't worry, we are not looking for you to pay any fees up front.

[wonder]

I agree with you that some ip's cant be bothered to talk to their clients and pass the buck onto someone below who knows nothing about your case. We are very lucky that we are able to talk directly with our ip and he has been very good to us about personal things as well as our iva. Obviously with us our fees are quite low and we are getting a great service too. The fees dont mean much if you're not paying the full amount back. Its when you are paying the full amount of debt back and have to pay off the ip's fees too that it would affect you. If you are happy with the service your ip provides then I think this is more important than fees. I have heard of some firms not doing a good job, but being on this forum you get to hear stories and thats why i always recomend the few firms that post on here as thay have all provided good service and you get to know which to avoid.

[ivas4us]

Sorry Melanie if I have upset you with any of my posts but I though that the forum was to discuss all aspect of IVA's and I am a little puzzled why I should be asking my IP a general question which is not specific to my own IVA. I have always supported your proffesionalism as an IP on the forum and will continue to do so. It was only today that I discovered that different fees apply to different IVA's and therefore posed the question. It is always good to get the views of as many people as possible which we can all learn from. It appears to me that every time I have a view or ask a question I have done wrong.

[MelanieGiles]

I am not upset at all, and hope that I have answered your specific question about the effect on dividends payable.

[ivas4us]

Thank you Melanie you have. It was just a surprise to me to see that fees differed. I suppose it is because when you read things like IVA protocol you automatically assume that there are set fees. Hope you had a good time in Belfast.

[MelanieGiles]

As a profession we had hoped that the IVA protocol would have brought some consistency to the basis of IP fees - but sadly the lenders were not prepared to go that far. In my discussions with many of the creditor representatives, it is clear that clarity on this point is welcomed by all parties concerned.

[ivas4us]

I agree and actually assumed that was the case but must confess that I never questioned it until today.