Questions about last stages of my IVA

[s.b.w]

Hi all

Just a few quick questions about my IVA (which is nearly finished... WHOPEEEE)!

My IP is GT and they have been relatively ok so far (although they are getting rather funny lately). I now have a few concerns as I have heard that they can extend my IVA if my p/£ doesn't meet the level stated in the original proposal, is this true?

Reason I ask is their fees seem to have jumped up recently (originally was £5,000 and there already at £8,000, and I still have 8 months plus the ending of the IVA to go).

If they can extend it (which I'm sure they can), by how long can this extension be?

My p/£ was set at @29pence, but with my calculations I'm looking at @25pence in the pound a opposed to 7p/£ if I'd gone for Bankruptcy.

Any advice would be much appreciated.

[:I]

Arghhhhh!!!!!!!!!
If only I'd said NO!

[Adam Davies]

Mmmmmmmmmmm 8k fees seems about the norm,considering your IVA was taken out nearly five years ago and it was probably on the time cost charging basis.You need to read your chairmans report for the last review and see if they say anything about extending the IVA and also look at your original report following your creditors meeting and see if there is a provision for extending your IVA until the proposed dividend is met.
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

[s.b.w]

Thanks Andy, will get onto that tonight.

It rings a bell, but can't remember 100%

Glad it's nearly at an end though...



Arghhhhh!!!!!!!!!
If only I'd said NO!

[MillyBo]

It you make all the payments for 5 yrs as requested and as printed in your contract, why on earth should you possibly have to pay into a 6th year because your IP wants more money - aren't the IP costs agreed at the beginning and incorporated within the agreement/contract??

[Adam Davies]

Hi
I bet you are.
If you have to meet the minimum dividend and you calculate it to be 4p short then work out 4% of your original debt and this will be the extra that you will have to pay in.
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

[Adam Davies]

Hi MillyBo
They are these days but 4/5years ago some IVAs were on a time cost fee basis and the IP would charge the work out on a hourly basis.If they underestimated the work then they would charge the extra,a little bit like an open cheque book.Creditors have wised upto this and this may be part the reason that TIX[the Insolvency Exchange]who represent many creditors in IVA voting are looking to cap IP fees even further[too far in my view]
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

[MelanieGiles]

If you guaranteed to make the original dividend pledged, then this can only really now be done by extending the term, but you should have been warned about this much earlier than during the final year. IP's do have a responsibility for keeping clients fully informed as well as creditors!

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[s.b.w]

I do have a feeling this is the case, I'm sure I read it in my orginal aggreement, which absolutely terrifies me!

In reality, I could be paying for years at this rate!

The £8,000 was up until April this year, so I still have another 12 months plus the end period!

My calculations are as follows

5 x £3600 = £18,000

Less £8,000 GT fees = £10,000

Total amount owing @ £42,000

Leaving @ 24p/£ not including occasional additional payments made.

The original final payment was looking like @ 29p/£.

My maths isn't that good, but it looks like being around 20% short!

Oy-vey!


Arghhhhh!!!!!!!!!
If only I'd said NO!

[MelanieGiles]

Assume that you are paying £300 per month and that £3,600 is a typo!

You will need to pay for another 7 months - and more if your IP's fees are going to increase. I would not have thought they ought to charge more than say £1,000 for an additional year, so it does look as if yours will be a five year agreement.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
I would speak to them now and ask them to give you in writing their estimated costs.At least then you will be able to see where you are.
There fees should be capped at 40% of realisation[money paid in],mine were capped by my creditors at 35%,so if they are capped at 40% it will be £720000 this will leave you £1400 extra to pay.Another 5 months !!!
There is no way that IP fees should be any higher than 40% of money paid in unless the case has been extremely complicated and full of problems.
Please let us know how you get on
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

[s.b.w]

the 5 X £3,600 were the number of years' I'd have paid in at the end of the original 5 year period.

Mine started on the 16 April 2003 so should be finished by the 15 April 2008, but now looking at christmas.

Could I argue at all regarding the much increased fees?

Arghhhhh!!!!!!!!!
If only I'd said NO!

[MelanieGiles]

Silly me - I did not spot that! You could argue the fee issue, but I am pretty sure that your IVA proposal will be relied upon by the IP which probably provides for time cost based remuneration.

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Rainbow]

Hi SBW
Can I just ask a question about GT (We are finally at signed proposal stage - Started back in April!) You say GT are getting funny now - Can you tell me how? Also can you tell me what information they require at review? Which office do you deal with?
Thanks very much
Rainbow

[s.b.w]

Hi Rainbow

It used to be fine just to send through letters from my wages department (if I didn't have pay slips, which often happens as I travel alot for my work), now it always has to be via payslip, even though this gives out less information.

As mentioned, I travel alot with work (which I have to pay for) and I have always included this in my travel expenses (which I have always disclosed to them) and now it seems that this is a problem!

My expenditure is alwasy set at a minimum (I only put down £150 per month for food, £300 for rent etc) but my travel is £470, for which I now have to provide receipts, even though this was never a problem up until the past 12 months.

It's silly things, but thing that are really bugging me now, all the same.

They have asked me recently (for the first time) for letters from my employer to explain costs etc, which my employer has obviously asked me why I needed them and meaning I have to let them know I'm in an IVA, whch I shouldn't really. All in all it's been ok up until this year.

I really thing you shouldn't have any problems. I was just hit by the no actual set fee at the beginning, which means they can just keep charging.

I would like to know one thing though... have I got any recourse with GT if I feel their fees are to high and how would I go about querying it without incurring moe bloody fees! LOL

Hope this is of some help.

To me it seems like GT have either asked for far to little information in the past and now I'm being bombarded with requests or they are chancing their arm and trying to get as much money out of me as possible.

Drop me a not if you want any further info.

Good luck

Shaz

Arghhhhh!!!!!!!!!
If only I'd said NO!

[MelanieGiles]

Can I just defend Grant Thornton a little here in that they are only doing the job that creditors required them to do - and it is fair that they be paid for that work, but a shame that the fees were not originally based on a fixed basis. They are one of the most reputable IP companies you will come across in this industry.

My beef about annual reviews (which I concur are important) - 50% uplifts (which I think are a waste of good time and trees - with the amount of paperwork they generate) is that this rarely results in a much higher dividend being returned - so where is the value.

And my bigger beef is that creditors are now expecting us to do this work for a lower percentage based fee. But enough has been said about that on many forums of late!

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

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk