up front payments

[suzz]

Hi everyone, just a quick question i have read on a posting that you advise not to pay upfront fees before an iva has been accepted, but the company we are trying to sort out things with want 2 months payment before they start anything.

The senior consultant we are dealing with is a bit slow, we have to do all the phoning and the e-mail contacts, it has taken her 3 attempts so far to do a SOA and STILL it is wrong, we are thinking of phoning the area manager, but are we being a bit to hasty?

She also has not explained anything to us about the procedures or different options, we only know what we do from this site and the posts.

[freelili]

Hi suzz

At the end of the day this is your IVA and if you are not happy at this early stage do you really want to commit for 5 years? Have you got it in writing what the upfront payments are for? Have you been made aware of all your options and the ins and outs of what you are committing to? To be honest I am terrified of this whole process and if I had the slightest doubt in the company I was dealing with I would run a mile. I am sure someone with more experience will be able to help you better than I can.

Good luck with whatever you decide, you are so much braver than me.

LILY

[ivamole]

suzz, it might help if you could say who you are dealing with so others can give you their opinion.

An IP must determine whether you are actually insolvent. They should also explain an IVA to you and the alternatives (e.g. bankruptcy, DMP etc) and, before you make any payments at all, you should also have been provided with a copy of the leaflet 'Is An IVA Right For Me' or something with similar content.

If not, you can download a copy from the R3 web site at http://www.r3.org.uk/publications/?p=75

I think the general advice would also be : Do not pay anything up front unless you have it in writing that the money will be returned if the proposal for an IVA fails.

Hope these thoughts are helpful.

[MelanieGiles]

I concur with that advice. As a practicing IP, I actually like to see clients making up front payments, as it demonstrates to me that clients can live within an affordable budget whilst the IVA is in preperation. These monies are held to the debtor's order, and disclosed as cash in hand on the IVA statement of affairs.

However, it must be absolutely clear that if the IVA is not accepted, or you decide to change your mind, that the money is generally refundable to you in its entirety.

If the advisor you refer to has not advised you of all of the options available to you, then I question whether her advice is of any value at all!



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

[suzz]

Thank you for your replies, i have another question, do we deal with the first contact person (this being the senoir consultant)all the time or do we get passed onto someone else. What is the procedures.

Thanks

[MelanieGiles]

Hi suzz

That will depend upon the firm you are using and the way they manage their administration. In my firm we try and keep the cases with the same person all the time - so that clients can build up a relationship with their case manager - however in larger firms you may find that you are dealing with different people all of the time.

Ask your IP to explain what happens in this regard in the firm you have chosen.

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

[suzz]

We are using Thomas Charles, and i don't know who will be our IP yet, when should we get to know, we have been dealing whith them since 31/1/07 that was our first telephone call.

Sue

[kezza]

Hi Suzz
I'm with Thomas Charles and they have been very helpful thus far. You should be hearing soon the way forward.
Hang in there.

[freelili]

I think you are in safe hands suzz

I spoke with them about and they carefully explained all my options. You are right to ask about it all though, its quite scary, right?

Good luck with everything



LILY

[ian]

Hello Suzz.

I am with ThomasCharles, and i have no problem with them what so ever.

I speak to the origanal person who phoned me back,and i cant fault him or the company.

They have put me onto Wilson Phillips as my ip firm,and i have had my creditors meeting date for the 15/02/2007.

Regards.

Ian