upfront payment

[posuns]

My IP is suggesting that an up front payment would assist in my IVA being accepted.He says the £3000 will cover all of his firms costs,setting up the IVA etc.Is this normal practice??My concern is that I will lose the money should the IVA be rejected.Can anyone give me some advice??

[bluebelle]

posuns,

that sounds really steep.....if i were you i would shop around. I have only paid one upfront fee of £457 which is my monthly payment on the draft IVA, this will also count as my first payment...all my fees are included in each monthly IVA payment (ie no up front fees). i have had my IVA approved today...so basically i have only given £457 upfront but that counts as my first IVA payment.

[neverending]

Hi
Walk away now !!! Speak to a company on this site as they are all bona fide.What is the name of this company asking for £3000 upfront ?
Regards

[posuns]

My IP is suggesting that by showing that his costs have been met then all of my payments will go to my creditors therefore increasing the chances of the IVA being accepted,

posuns,

that sounds really steep.....if i were you i would shop around. I have only paid one upfront fee of £457 which is my monthly payment on the draft IVA, this will also count as my first payment...all my fees are included in each monthly IVA payment (ie no up front fees). i have had my IVA approved today...so basically i have only given £457 upfront but that counts as my first IVA payment.

[DMB42]

Hi,
I agree with what's being advised...walk away. My company have organised my IVA and have been very helpful and supportive, (Creditor's meeting is on 4 Dec!!). They've never asked for any money up front. Their fees are included in my proposed repayments. When I first started this, I was advised by this forum that this was the "right way" for companies to be when setting up IVAs and I've not come across anything that would challenge this.

[bluebelle]

Yes and i was always under the impression (someone correct if i am wrong!) that all monies go to the creditors and it is the creditors that pay the IP...at the end of the day the IP works on their behalf for 5 years not yours once the IVA is in place....the only upfront fees i know about is by Debt management comapanies who refer you to an IP..and even then their fees are normal a few hundred £ and not thousand!

[neverending]

Hi
Just to clarify
All money is collected by your IP and they deduct their fees before sending the balance to the creditors[They normally make divedend payments each year]Their fees are agreed by the creditors so this is another reason for you to walk away from this company as their fees of £3k have not been authorised by your creditors.
What incentive has your IP got to push through your iva if they have had their money upfront ??
PLEASE walk away.

[posuns]

Thanks to everybody who has replied.I shall be off to find another IP.Can anybody tell me how long the whole process should take?

[bluebelle]

Posuns,

It can very, dependingon your circumstances, what company you use and how quickly you act regarding supplying the IP copies of your bank statements, payslips etc.
I made my initial contact on 16 Oct...my IVA was accepted at a creditors meeing on Friday (24 Nov)...so mine went through within 6 weeks of making initial contact. I am single and privately rent, any requests for information from my IP I replied back within 24 hours.

It really does depend. I think the average turnaround time is between 8-12 weeks...I have seen that quoted alot on websites.

Regards

Bluebelle.

[kezza]

Hiya,
Sent paperwork back for my IVA application, how long is it between doing that and hearing from whoever about the next stage, roughly?

[MatthewHolt]

You should really be paying only 1 payment and even then it should only be once the IP has done the work and you have received your proposal therefore its not really "upfront".

If they are asking for money before they do anything or they ask for multiple payments before the creditors meeting then my view is that an IP is putting little faith in the IVA being accepted and considering profit over the best interest of the debtor (you)

[bluebelle]

Kezza,

if you mean by paperwork..sending copies of your payslips, bank statements, creditors statements, etc....then they use these to draft your IVA proposal....My IP told me that on receipt of these they normally turn the draft around and back to me for approval within 2 weeks......think i got mine back within 10 days. Again i think it would depend on your personal cirumstances and also the workload of the IP.

[Dominic]

Get together everything about what you owe, everthing about outgoings and incomings.

[kezza]

Hiya,
Just heard from IP today, We are arranging to meet next Thursday as she says she prefers to do things face to face [:)] Then she can get things moving instead of sending things backwards and forwards.

[lessie1]

hi,, i am new on this forum as well, just like some of you i'm on the process of setting up IVA with my husband and the the payment from my surplus they are asking is £675.00 is this a reasonable amount? and i'm still trying to ask advise from different company called The Payplan Partnership just wondering if anyone have heared about this company.. thank you

lss