www.iva.co.uk

My Husband is 16 months into an IVA arrangement with a well known company. He is paying excessive fees to this company and his creditors have not yet received any payment. Can he change his IVA provider? If so how easy is it? Many thanks

I know the experts on this site have made it clear that it is VERY difficult to change providers mid-IVA. Have the company given you a reason for the high fees - are you able to say what the fees are so far?

Hi Andrea, I have found after two years of being in an IVA that my creditors hadn't been paid either, it's all gone on the fees i'm not sure if this works in all cases but it was in now. That's why my IP told me to put the original balances on my Bankruptcy form as none had been paid off.

Hi
It is near impossible to change IP,you will need a court order.
Unless you are returning a 100p dividend it will be your creditors that are paying the IP.It is also not unusual for the creditors to receive no payment until the end of year two[or even three].
What sort of figures are concerning you ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

Presumably your husband agreed to these fees at the time he signed his IVA proposals - which would also have disclosed the anticipated timing of dividend payments.

You cannot change the IP, but it might help to re-read the documents he originally signed to ensure that fees are being taking in accordance with the agreement.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Hi andrea_,

I'm afraid you cant change IP now. Haven't you agreed to these fees?
You should talk to your IP If you think your are paying more than whats on the agreement.

Regards,
Michelle P.

I'm going to add my 2p worth on this ... purely to relate an experience.

I used to work for an IP firm that produced proposals that suggested that the Supervisor be remunerated on the basis of time spent and that the estimated Supervisor's remuneration was expected to be £X.

The word to note there is 'estimated'.

I was finding that as contributions were coming in they were being magically billed out as fees. Not in whole, but a substantial amount of them. There were unrealistic chargeout rates and people had to spend very little time to run up a significant amount of time costs. As those time costs accrued it was seen as a cash cow.

I found it increasingly disturbing. I questioned the excessive billing and was told in no uncertain that it was being billed because the time had been spent and that at the end of the day the figures shown in the proposal were only estimates (Yes that word again).

I did not stay long there. I parted company with that IP firm as I felt that they acted in nither the interests of the creditors or the debtor but for the benefit of themselves at the expense of the aforementioned. Completely unethical.

Your proposals would no doubt have been modified by creditors to the effect that a minimum dividend applies. I assume that you will have complied with every request that your Supervisor has made and as such the time costs should remain in line with that quoted in your proposals.

As noted above you will find that a large proportion of the first two years worth of contributions do go on fees and that a first distribution is not made until the second or even third year. The Supervisor carries out more work in the first year of the arrangement on balance than the he does in the remaining years. There are all the immediate post appointment formalities to be dealt with and agreement of creditor claims. Unless your proposals do not have a minimum dividend requirement imposed by creditors, I would not be unduly concerned by the level of fees at this stage.



Tell it like it is.

I think any IP seeking their remuneration on a time cost basis these days in consumer debt based IVAs would have this modified out by creditors. There is no place for this level of charges in such small estates these days.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Hi
I was a "victim" of time cost fees in my IVA.
My full and final variation meeting showed money paid in by me of £37,242 with IP total fees of £16,475[nearly half].
Luckily my creditors saw sense and capped the IP fees at approx £3.5k less,raising the dividend from 31p to 36p.
Good on you Cybus for leaving and I,m sure that it,s time cost fees that have given the creditors reason to complain about fees.
Regards
regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp