Good morning,
I previously submitted an IVA earlier this year through a licenced practitioner which was accepted by all creditors except HMRC (who had enough vote to block) as it did not reflect the equity in my home.
Now I am in the process of producing the supporting documentation for a new IVA proposal. This is a cash lump sum offer which covers the equity in my home.
My practitioner has moved firms and my concern is over the new firms fees.
They are asking for a £2500 "Nominees fee" proir to the creditors meeting and non - refundable should the IVA be rejected and £5000 Supervisor fee.
My concern is that these fees are double the first IVA firms charges.
My second concern is that as they are coming out of the lump sum of £35K that the fees are weakening my offer and increasing the chances if failure.
Niether of the firms mentioned are connected to this forum.
I would welcome any comments/advices please.
Thank you.
Before you put forward this proposal, speak to other firms for further advice. Visit www.iva.com - the advice is free and you may find a better proposal.
You have to agree the IP's fees in advance of the proposal being presented to creditors, so if yo feel they are too high ask for an explanation - especially as your earlier application was done at a lower level. At the end of the day, however, fees are ultimately fixed by creditors, so they could end up being reduced in any case.
Many IP firms work 'no win no fee' therefore no costs if rejected. If you find an IP firm working in this fashion the fees will have to be agreed with creditors at the time of the meeting for the IVA to be accepted.
This may be better for you as your IP may have more of an incentive to get the IVA approved if they have not already trousered £2500.
If you are not happy you need to go back to your company to discuss this with them. Not all companies charge a fee that is still payable if an IVA is rejected so you may want to consider this. Find out what your chosen companies success rate is especially with HMRC as majority creditor as you want to give yourself the best chance. It does not all come down the dividend, the overall quality of proposal put forward is also very important.
Keep us posted how you get and what you decide to do.
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
If you’re looking for effective debt related information, articles and news, then go now to our on-line advice service at www.debtadvicetv.com
If you’re ready to ask us for specific advice or help, then get in touch at www.call-me.debtadvicetv.com so you can start to free yourself from the stress and anxiety of overwhelming debt.
