IVA costs [IP charges]

[rickyg33]

I agree that the first consideration of selecting the best IP must always be one that can work through an IVA that is workable and achievable.

But I originally asked the question, as others who are on the brink of going into IVA would, to try and see what the likely costs would be.

For instance, if I work out that I can get about £400 per month together, and one IP is likely to charge £60 per month in fees, then that's a £340 per month contribution to the creditors - whereas one that charges £100 per month means a £300 contribution. And then the 'hurdle' of acceptable %ages [TIX etc.] comes into the equation.

[carlmcmullen]

Valid point Ricky but you will find now is that it is not the IP's who decide the fee's it is the creditors who determine them and they are imposed on the IP's.

And given the this all IP's will be working to the same fee structure so it shouldnt really matter who you approach with reagards fees.

Carl

[Adam Davies]

Hi Ricky
I agree with Carl don't worry about fees.
Service and your IPs acceptance history is far more important.
You do not pay the fees,you creditors do.
You will pay the same monthly amount into an IVA regardless of the fees that the IP charges and has accepted
Regards

[rickyg33]

as an aside........I was talking to my solicitor the other day and I mentioned IVA......he told me to think very, very carefully and was clearly not supportive of IVA's.......told me the fees were extortionate

[carlmcmullen]

An IVA is supervised by an Insolvency Practitioner who are professionals and provide a professional service.

In comparison to the Interest you would normally be paying over the 5 years it is not extortionate at all and as creditors accept them they to must feel they are reasonable otherwise they would reject.

How much interest are you paying on your Capital one card? I expect it to be more than £60 a month.

Like Andy said the fee's need to be your last concern the reputation and history of the IP should be your main concern when deciding who you should go.

[Adam Davies]

Hi
There is alot of misconcepions out there regardig IP fees.
It would be fair to say that a number of years ago IPs that charged on a time cost basis did damage the industry,in the eyes of the press and creditors.
With the new fee structure IPs do earn their money in full with regard to IVAs,having spent a day with Melanie I can truly vouch for that.
An IVA is a wonderful vehicle to address your unaffordable debts, once and for all,when used in the right circumstances.It is also,in my view,a type of rehabilitation because once you've been through an IVA you'll never want to go that way again !!
Regards

[Adam Davies]

Carl
Mr Men come to mind !!

[carlmcmullen]

<<<< Point taken - thanks Andy

[Adam Davies]

That's better !!

[cr15py]

I suspect that my IP's fees were reduced as well when looking at the modifications. I know that my nominee fee (think that's right!) was £1,500+VAT and the TIX modifications said that it was a maximum of 5 months contribution (5*£270=£1,350). If the 15% also applies (not sure, didn't see that) then my IP will be working for 15% of £16,500 = £2,475, plus the £1,350 mentioned above = £3,825 plus any other charges that are made. BUT my IP, and I suspect all other IPs, work very hard for their money.

But I agree, the fees aren't important, because although technically you are paying them, you aren't if you see what I mean. I would rather be paying more to a firm who I can wholeheartidly trust than less to one I wasn't sure about.

[ianmillington]

As a very rough guide...

If the total payments you make into the pot exceed the value of the debts then technically you are paying the fees or at least in part. Otherwise the creditors bear the costs, hence their increasing interest in the matter.

[OPTIMIST12]

Around the time I first found IVA.co.uk there was a fascinating thread from a poster whose IVA fees were being calculated on an ongoing "Time / Cost" basis. He used to post details of how he was charged for letters / phone calls / photocopying etc. etc. and the total fees were spiralling out of control.

I cant remember the name of the poster or how the thread concluded but I do remember feeling SO grateful that my IVA Company had calculated my fees on a fixed basis.

[Adam Davies]

Hi Chris
Just to be technically correct yours will be 15% of £270[£41] times 55 payments plus the £1350,so a total of £3605 and this includes vat,so the IP will net about £3k.
A year ago the IP would have charged this for just the nominee fees, the five year supervising fees would then be about 5k more.
You can see the huge change in fees,especially when dealing with fairly low value monthly IVAs.
My concern is that IPs will not be able to keep this level of IVA cost effective and will simply not propose IVAs under a cretain monthly level[possibly £400]
Time will tell
Regards

[cr15py]

That is a heck of a lot less than they were charging originally! Based on my original proposal, their fees were about £5k(net).

I can see completely what you mean about IVA's and their cost-effectiveness in the future.

[Adam Davies]

Hi
Here it is
http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=2212
I don't know what happened in the end
I'll email Chris and see if he can update us