A variation meeting has been decided as a next step, in order to work out if our creditors will accept a substantial amount of time off for a payment break.
By doing so a variation fee and a nominee fee has been requested upfront, which we of course cannot afford. I completely understand the extra work that prior to the meeting generates for this fee, but for us who can't afford the several hundred pounds requested, what happens in situations like these? Is it a possibility that these fees are tagged on to the end of the IVA?
Why are you having to pay a nominee's fee - if you are 16 months into your IVA surely this has long been paid?
It is quite common for clients to be required to fund variation fees outside of the "IVA Pot", although in practice they are usually paid out of the funds held. Does your IVA proposal not give the ability to have a payment break without reversion to creditors and a formal variation?
If you cannot afford the payment, then your IP may be minded to seek creditor agreement to funding the full costs, but as with most things it does depend upon what the IVA proposal says.
I'm actually a client of yours! And I was told this in an email from a colleague at your firm that this would be the case.
I completely understand in regards to the variation fee being sought, but the nominee fee did throw me a bit I have to say.
I have responded to my case handler in the meantime, so will await a response in due course.
The payment break is to do with my year's maternity with additional year and a bit after (so we're talking about 2 years in total!) so the variation was the next step in trying to gauge if this would be accepted by creditors.
I can imagine this is a very rare occurrence for such a lengthy amount of time to be extended in an IVA, and so I'm anxious to know what the outcome will be, in time.
Thank you!
Originally posted by MelanieGiles
Why are you having to pay a nominee's fee - if you are 16 months into your IVA surely this has long been paid?
It is quite common for clients to be required to fund variation fees outside of the "IVA Pot", although in practice they are usually paid out of the funds held. Does your IVA proposal not give the ability to have a payment break without reversion to creditors and a formal variation?
If you cannot afford the payment, then your IP may be minded to seek creditor agreement to funding the full costs, but as with most things it does depend upon what the IVA proposal says.
Last edited by Coffee Break on Mon Jan 13, 2014 6:31 pm, edited 1 time in total.
I had a feeling that you were one of my clients when I posted, as the facts you were stating seemed very familiar.
I, as always in my firm, was the decision maker in this matter, and had advised my staff member of what to say in their e-mail to you. If you are concerned with my decision, I am more than happy to discuss this with you personally - a public forum is simply not the place given the unusual circumstance of your particular request, and the difficulty I forsee in explaining your request to creditors.
I am in the office each day this week, so if you want to chat don't hesitate to call me.
