Just agreed proposal

[siorghra]

My creditors told my IP that their fees were too high and they had to lower them as part of my agreement. I found the whole process draining like you did. I was constantly fighting to include everyday essentials which my IP kept ignoring, but got there in the end. Its never to late to get second (or third) opinions.

[drg]

Hi, For the course of my IVA the cost of realisations were as follows:

Irrecoverable VAT £1085.31
Supervisors Fees £4299.64
Disumbursements £753.23
Nominee's Fee £1148.94
Legal Fees £120.00

Total £7407.12

This was on an original debt of £42k, which ended up to around £51k during the period the IVA proposal and court order where being organised prior to the creditors meeting.

I think that mine was a fair deal, my IP was outstanding during the course of my IVA and was always understanding of any issues that arised.

The IP's fees are not really of concern, as has been said, the creditors will ask them to cut them down if they seem excessive as this obviously cuts into their return and will not be allowed.

The most important issue is whether you are able to maintain agreed payments for the course of the agreement whilst still being able to pay the bills. My original proposal, which was agreed with some modifications, worked for the first year, it was very difficult and I realised it was not going to be possible to continue, so I completed a new I&E and asked my IP to call a Variation meeting and managed to reduce the montly payment by 20%, this made things a lot easier, although still difficult.

I think a lot of proposals and modifications are agreed by the debtor without really thinking about the long term issues, the sense of relief on agreement of the IVA is such that you would basically agree anything to relieve the pressure of the debt.

[MelanieGiles]

Very well said drg.

[David Mond]

It goes to show that variations are achievable but debtors should be realsitic in what they sign up to. The CCCS guidelines on expenditure are tight and debtor's have to make sacrifices - an IVA is not easy but in the main achievable if all realistic figures are put forward.