up front fee's

[madbobix]

hi guys i already feel part of a family and can see the support everyone gives.although my iva has not yet been approved my first 2 payments of £512 will start next month is this anyone elses experiance?

Adrian

[rockbottom]

HI Madbobix

i dont know the answer to that but im sure someone will tell you soon, i just wanted to say welcome to the forum.
rb

[madbobix]

cheers rockbottom

[kallis3]

Hi madbobix.

We didn't make any upfront payments before our ivas were approved. We should have made one, but as our bank account has neither debit card nor cheque book we couldn't and so just set up the standing order as soon as our meeting was sorted.

I know each different IP has different ways of approaching things, and I know some do ask for upfront.

Some of the other posters on here will probably have a better idea.

[madbobix]

thanks in advance to all that reply to my post.i wonder if i'll get my money back if it's not approved lol

[Shining]

I'm with Melanie and was assured the one payment I made prior to my IVA being accepted was refunded to me if the IVA was not approved. The payment I made was my first payment. Check if you get a refund if the IVA is not successful as it's a lot of money to lose.

[emma_t]

As others have suggested find out what the fees are for and if they are refundable if your iva is not approved.
I did not pay any upfront fees, just provided a cheque for the first payment prior to creditors meeting to show commitment to the arrangement.

Also have a look at www.iva.com for reviews on the company you are using as this can be very enlightening.

Good luck
Emma x

[TheMatrix]

If you've gone with Thomas Charles they add this on to the 60 months payments like they did with me.

You can always cut the middlemen out and go straight to a IP, that way you only make 60 payments instead of 62

[Cybus]

Are you dealing directly with an Insolvency Practitioner or are you currently with an intermediary? If you are going through an intermediary such as Thomas Charles, who was mentioned above, then in the event that your arrangent is NOT approved, you will NOT get your money back. That's over a grand down the drain

If you are dealing with an IP directly then ask the question what happens to funds paid prior to the creditor's meeting in the event that the arrangement is not approved. If the firm is reputable then you'll find you'll not be paying any money. An IP will only put forward an IVA if he / she believes it has a reasonable chance of success. An intermediary doesn't really care if it works or not as they've got a fee out of you.

My advice to you is to go to an IP direct and do not use an intermediary.

The intermediary is charging you to gather information to pass on to an IP. No matter how they come across they need no qualification to do what they do. Anyone can do what they do. They don't charge a fixed fee and seem reluctant to comment on the basis of their fees when asked on this forum. An IP still has to do the same work whether you go directly or through an intermediary. Save yourself a packet and if you are dealing with an intermediary, switch directly to an IP now before you pay anything out.

[madbobix]

thanks cybus i'm with baines and ernst and i don't know either way does anyone know if this company is reputable or not ?

[spla]

i was with them i can tell you if it wasnt for baines and ernest i would probaly still be fighting with creditors they set me on the road to recovery 2yrs ago they are so helpfull and freindly nothing is 2 much trouble they are brill i am surprised you need to ask after talking with them

[madbobix]

thanks spla yes i agree they seem to be good so far i'm just so stressed at the moment and worried sick about my iva not going thru and loosing £1000 i can't afford to lose also all my payments to the cards have ceased and are now overdrawn if my iva doesn't go thru we're really without a paddle lol

[spla]

youlle be fine even if you dont get a iva they wont leave you high and dry youve done the hard work your just torchering your self just relax youlle feel silly when its approved all that stress for nothing your showing that your trying your best to sort your debt hay youlle wonder what to do with your self in a few weeks when all the creditors stop calling let me tell you its a good feeling when they do ring and you can say im in a iva ring my ip

[plasticdaft]

Surely some proposals get turned down though and Ip's will have put work into making the proposals so dont they take some of the money that you have paid as fees??(advertising costs etc)(or am I being silly,do IVA's not get advertised anywhere,like BR)

[size5]

This is a very interesting question, and it would be wrong for me to comment directly upon anyone else's business practices.

Some proposals DO get turned down, and it is only right and proper that any expense incurred in writing a proposal should be met, the problem being that it is difficult to justify a charge to a vulnerable individual for a service that cannot be guaranteed in the first place.

This is why some firms will take payments "up front" so to speak, presumably because that is the only service that they provide.

I cannot speak for anyone else that posts here, but I can speak for myself.

As an example, if someone approached me for an IVA but was not suitable, I can refer that case for a possible DMP, maybe a secured loan or remortgage, or a Trust Deed, this is generally done via a preferred partner so that any cost is at least partially offset by the referral fee from the preferred partner.

This is why I never ask any client to pay a penny until successsful completion of creditors meeting.

Hope this makes sense.

Regards.