IVA Charges

[trog]

Whats a standard charge to set up IVA, is it a one off fee or to you pay for each year your iva runs like over the 5 year period.Or does it run on the amount you owe.

Believe IVAs have been around for a while, But whats the saying with "New government legislation means thats up to 75% of debt can be written off, it seems the latest market to be in.

As im not personally in debt someone else is, just trying to get my head round it., as reemeber watching watchdog a good while back on bad reports on IVA companies, where people were actually worse off.

Supposes theres good and bad in everything

Just trying to understand it more

[aguise]

Hi Trog
in the past iva companies could charge on a time cost basis, it then became more standard to have set fees (my husband and mine is costing £9000 jointly. Now I think with changes brought in by tix it is about 15% of the total debt.
The main thing with an iva is to choose your company with care, to make sure that your living expenditure is enough for you to live on.
An iva is not meant to be easy but for me and a lot it is a way of paying back as much as we can and means we can have a reasonable standard of living whilst doing so. Yes 75% can be written off, but some actually get very little written off it depends on your income and the return you are giving to creditors, I am paying back 32p in the pound but with the extra overtime being payed in it will be a higher return, so in my case it will probably be about 60% or less written off.
Hope my waffling has helped a little, someone will correct me if they think I am wrong.

Ang

Please visit my blog at http://aguise.blogs.iva.co.uk/

[trog]

Thanks

as with reading some posts £2000 charge for filling in bankruptcy, its shocking. suppose there are always companies to exploit people in vunerable states.

Just wondered if it was a set amount on the amount you owed, as suppose the iva company will not know how much they need to do to try and get you sorted.

[MelanieGiles]

It always makes me giggle when I see that "New government legislation" wording used by one particular firm! IVA's have been around since 1986 - and I have been doing them for that long unlike a lot of the companies who engage in glossy TV advertising.

Fees these days either tend to be fixed or percentage based, and an only be charged with the agreement of both debtor and creditors.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[trog]

Thanks melanie,

So do you the debtor solely pay for the Iva charges??

if with a IVA company can they then sell it on to someone else once approved then charge you again.

Ive seen somewhere a company called Spectrum where you pay an initail amount upfront then so many months payments then thats it.

[Adam Davies]

Hi
Your debtors do pay for the IP to arrange and supervise your fee if you are offering a dividend below about 90p,and that will cover most IVAs.They can't sell your IVA on and charge you again but just be aware of debt management companies that charge an introduction fee or IVA companies that want you to start paying before your IVA is accepted.There is nothing wrong with either of these set ups as long as you have in writing and understand what happens to your money if your IVA is rejected,good companies will promise a refund.
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

[sonyse2t5]

If you have property, there's virtually little written off.

Aguise's figure of 60% written off is pretty good. Mine is around 40%.

[MelanieGiles]

Sony - I am sorry but I really do not understand where you get most of your information from!!!

Please verify your comment "If you have property, there's virtually little written off", in a marketplace where the average return to creditors is between 30% and 40%.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[sonyse2t5]

I think very few on this forum is paying less than 40p to the pound with these TIX decrees of min' dividends. HSBS don't take less than 42p? The more creditors want the less debt written off unles you are paying 32p to the pound as Aguise mentions. I have sen 60p to the pound quoted here!!

I get my info from my IP thank you very much...I only pay 58% of my debt and that means 42% written off if I keep my repayments.I don't get overtime so my IP can't increase my contributions. If I have property and Eq -creditors will take that.

The whole idea of IVA is debts are written off, thats their atraction, or why bother entering into one and paying 100% debt and fees - its legal too. I love it

[jpj]

Creditors will only take equity if you can raise the funds to cover that equity!
Its very rare that mortgage companies will give you 100% remortgage.
You are allowed to keep some equity.
"if you have equity,creditors will take SOME of that!"

[MelanieGiles]

The whole idea of IVAs is that you repay as much as you possibly can over a realistic time period. The main motivator or attraction is not to write as much debt off as you can. I am sure that your own IP will also be able to confirm this to you.

And please bear in mind that the posters on this forum represent a very small cross section of people in IVAs. As I said in my earlier post the average return in IVAs is between 30 and 40p in the £, which I as sure your IP will be able to confirm if they are aware of what is happening in the marketplace.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[whichwaynow]

Ezcuse me if I am wrong here. I thought that the IVA gave the debter the option to pay back as much as they could afford to the creditors with out worrying about any legal problems. I did not think that it was a run up a large amount of debt then pay back as liitle as you can ,(get out of jail free card).
I think that the publics perception of IVAs is that it is a easy way out of debt. This must be down to a large part the reporting of it in the media.

[bagpuss]

I have had people say to me...you jammy sod...or you lucky thing, when i have told them about my IVA...it really irkes me as they have no ideas the trauma we went through and the guilt of spending money that we couldnt pay back. Anyone who thinks its easy or a get out of jail free card should sit for a good few hours and read some of the very sad and desperate threads on here by people who are living with debt.

The only thing i do feel lucky about is that i got to keep my home...as it was very important to me. We had enough equity to offer a F/F but the amount that got written off will always ring round in my head as a reminder to never have what we cant afford again.

Angie xx


My IVA Story......http://bagpuss.blogs.iva.co.uk/2007/09/ ... iva-story/

[Welsh Boy]

Excellent point made by Melanie in pointing out the amount of time IVA`S have been around, it`s the get rich quick merchants who suddenly appear as a huge base of knowledge and the answer to our problems who in my opinion create problems for those of us already with enough problems. An IVA is a good product and has helped so many but you need the right IP and firm working with you or it`s a case of a little bit of knowledge being a dangerous thing, I see it so often in my industry and I speak as one who has been qualified to offer professional advice since it`s inception many moons ago. So to recap an IVA Is not about dodging payment it is a good product when used correctly. Tony

Mortgage Broker
See me interviewed on IVA TV:
http://www.iva.co.uk/tv/default.asp?id=156

[Skippy]

Hi Tony, it's good to see you back posting on the forum - I hope you're well and truly on the road to recovery x

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/