we are about to sign up to an IVA with grant thornton and have just noticed their fees are £3,000 for me and my husband plus they mention some extras thats at least £6,000 is this normal?
Hi Liz, the fees are usually agreed by your creditors and your payment will be as agreed at proposal (subject to modification). If your creditors are not happy with the fees charged they will asked for a modification of these maybe. I personally didn't worry about the fees, I just knew I was paying for a good service and was happy with what was offered to me x
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
The fees are actually paid by your creditors. Typically there is a nominee fee - this is a fee charged post approval. Basically it's a fee for the draft proposal and the work involved and to cover the MOC (meeting of creditors). There are also Supervisor fees. These fees are charged by your IP to supervise the VA; IE: ensure that you make the payments, annual reviews and 'look after' you for the next five/six years. The Supervisor fees are normally broken down into a monthly payment. The IP will include his/her proposed fees in your draft proposal; however 99% of the times, the fees are ususally modified by the creditors if they accept the proposal. The fees are nothing to worry about and you do not need to find money to pay them as they are extracted from your dividend payment. The only time you would pay these fees would be if you are paying 100p/£.
Last edited by spike on Sat Dec 11, 2010 10:08 pm, edited 1 time in total.
It is debatable whether we should be advocating whether fees are paid by creditors - and I think that the OFT in today's current climate would have kittens if this was even being suggested. It is right that the fee is drawn out of the monies paid into the IVA, but this is the debtor's money and they always have a choice whether to pay or not - and if you end up paying the debts in full, you will be paying fees on top of that, but of course there may be some saving on interest payments to counter this cost.
It is vitally important that all persons seeking to enter into an IVA with their creditors fully understand the basis of the charges from the outset - it is your proposal in the first instance, and if creditors seek to modify the fees you also have to agree to those proposed changes as well - and this should all be very clearly explained to you in advance. If not, then do seek further clarification from the IP firm you have chosen to represent you.
