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.
Last edited by
MelanieGiles on Wed Jul 29, 2009 6:07 pm, edited 1 time in total.
Regards, Melanie Giles, Insolvency Practitioner