Hi My daughter is in an IVA (5years payments) and her company has just extended for another 12 months she asked me to have a look at the terms and i showed my accountant. he tried to speak to the supervisor but they go really shitty. from what we can work out from payments made and actual payments to creditors the supervisor has charged 7k in fees... which seems a large amount for only 20k original debt. should we complain to the insolvency service or put it back to the court.
The creditors will have agreed fees at that level. Your daughter pays no more than her disposable income anyway. Her payments will not be reduced so I am unsure what you can do anyway.
Fees qare as agreed at the outset in the document your daughter signed. The fee structure these days is usually in the order of £1500 - £2000 nominees fee ( for preparing the proposal, and 15% of the payments made after acceptance. Some firms charge more, but this, also, would have been agreed at the outset.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
As others have stated all fees are agreed and authorised by the creditors in the IVA. Payments into a monthly IVA will be the same regardless of the fees agreed
I am sure you and your accountant would have been aggrieved if a third party rang up and questioned your fees! If you want to help your daughter you could settle her IVA instead of casting aspersions against the professionals who have sorted out her debt problems.
Michael ... I personally feel your last comment is a little harsh and unnecessary on the OP .. not sure any aspersions were being cast, just parental care and wanting to ensure his daughter was being treated with fairness.
Daviddg87 ... your daughter will have had an explanation of the fees at the outset of her iva and as others have explained they are fair with regards to the work that our IPs do to enable us to become debt free. Although your daughters level of debt was only £20k the fees are the same for someone with double the debt.
If your daughter had not entered into her iva the interest on her debt would have continued and she possibly could have landed up paying minimum payments each month and never becoming debt free.
Her iva will allow her to become debt free and be able to start again.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I agree that ips and companies should have fees but when your head is in the shed when you apply for an iva you only get to see thepaper work when you sign in my case it was £7,000 and that does not include the cuts from the ppi claims so in total I paid the iva company and its eif partner a very huge slice of thr monies paid into my iva ie original debt £27,000 which I paod back at £338 a month plus £14,000 ppi claimed but to my surprise only 66% of the amount went to the creidtors there as far as I was concerned too much out goings to the iva company ie 44% when I asked about this at the end of my iva I hit A BRICK WALL
SORRY MADE MISTAKE SHOULD SAY 34% I WOULS HAVE LIKED TO HAVE PAID OFF MY DEBT BUT IT AS I SEE IT WAS A MONEY PIT WITH OVER £35,000 PAID IN I REALLY THOURHT THAT I WOULD PAID IT ALL BACK ONCE PPI CAME OUT BUT I REALISE NOW IT WAS JUST ANOTHER MONEY SIPHONING EXCERCISE BY THE IVA COMPANY AND EIF WERE MY CREDITORS REALLY AWARE OF THIS!!!!!!!
Hi Dawn. Yes, your creditors were aware of the fee structure. In many cases they are the ones who impose it on the IP.
For instance, when my IVA was proposed the IP put a set figure in for fees. At the meeting this was amended by the creditors to a percentage (15%) of monies paid in. This, I believe, is a ploy by the creditors to make the IP try harder to collect more.
Personally, I don't care what the fees are --- the creditors are happy with them and I have the protection of the IVA. In the end, with interest and charges suspended, I paid a lot less than I would have done without the iVA.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Insolvency practioners are accountants by profession...bet 'you' didn't known that.You can't just train exclusively to be an IP They have powers like HMI revenue which is they talk and everyone listens.
The IVAers do not pay iva cost fees.Just how are debtors paying their fees?The debt and fees add up to less than what is been paid back in 98% of cases.Debtors are not invoiced for services rendered.
What the IP keeps as fees is the debt % as approved by creditors.
Why are people worries about fees.You not paying it.
just like...CCCs dmp plans are advertised as Free.....but we know they keep a % of the debt payments for channelling payments as 'fees'.
Some dmp firms charge for managing the debts for debtors by proxy now that dmp service isn't free.
We paid a lot less each month once in an IVA than we did trying to pay all of our creditors, so the fees the IP were paid were a fair amount.
Once in an IVA the worries were gone and we knew we only had 5 years till we were debt free, what price can you put on that.
IP's are in business to maximise their profits and as long as they act within the law they can charge what they like and do! But to the person paying into the IVA it is immaterial what they charge in fees, it doesn't change or affect what you pay each month. In my IVA the IP took nearly 30k in fees, which I thought was totally immoral but it was agreed by the Creditors and the Creditors were paid the exact percentage of the original debt staed in the original proposal.
Xtra Charges can be bolted on iva fees..If extra times are spent in managing the iva...running into 7 years,admendments etc.
If the iva runs like clockwork in the 5 years then no extras.In theory a quick FF settled iva should cost less to run.
The rates are regulated like conveyancing or accounting charges so it is within the profession.
And no Ips do not charge what they like.Regulation exist and costed out as accountants do.
You can see how much less the creditors actually get back in most cases.
20K debt..If down to a 50% payback schedule as an illustration..minus 7K in normal 5 year runtime...
3K??
Last edited by TzeKin on Mon Nov 03, 2014 11:30 am, edited 1 time in total.
