Do all IVA company charge Instruction Fees?
After many months of giving it a thought, I finally took the courage to ring an IVA company, the debt adviser was really good and helpful. Two days later, I was sent a draft proposal to look at. It's daunting to go through the process, I may say, with all the documents I have to produce. What caught my attention, was, that I have to pay two months Instruction fees, before they can go ahead with the whole process. Do all companies asked for advance payment? I thought, I may ask some advice from you guys in this forum. Thanks.
Can I ask which company you have approached? You would not get a draft proposal after two days as you need to send off statements for all of your debts. Is it just an introductory pack?
You don't have to pay upfront if you don't want to, there are companies who don't do that.
I would speak to one or two more companies - visit www.iva.com for a list of companies and reviews. Give one or two a ring for some free and impartial advice.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Sounds very much like you have been talking to an introducer, rather than the actual IVA firm. I would advise taking Kallis's advice and chat to a couple of the companies on the link she provided. It costs nothing and could put your mind at rest.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It sounds like a proposal to an IP who will then write a proposal for an IVA.
There are many good IP firms that will not charge you a penny to write the proposal and set up an IVA for you if that's the solution that's best for you. There are charges involved but they will be agreed with creditors and will be taken from the money you pay to your IP after the IVA is agreed.
I have big reservations about any company that will charge people already in debt large amounts of money for doing nothing other than introducing you to an IP. You can do this yourself, it only takes a few phone calls. charging to introduce you to an IP smacks of preying on vulnerable people who will pay because they think that's how it works and just seems wrong.
Have a look at www.iva.com and call a few IP's, find someone you are comfortable with. Five or six years is a long time and you need to have good communications with an IP in order for the IVA to be successful.
Introducers have a place but they aren't good value for everyone. If you don't feel you need any help preparing your documentation then you could go direct to an iva provider.
There are some respectable introducers who don't charge the earth and they should always make sure that you know what these fees are for.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Can I ask which company you have approached? You would not get a draft proposal after two days as you need to send off statements for all of your debts. Is it just an introductory pack?
You don't have to pay upfront if you don't want to, there are companies who don't do that.
I would speak to one or two more companies - visit www.iva.com for a list of companies and reviews. Give one or two a ring for some free and impartial advice.
my mistake, yes,it was an introductory pack sent to me. I'm definitely having second thoughts about this company, as I don't have the extra money to pay them.
Ivoryfalcon wrote:
It sounds like a proposal to an IP who will then write a proposal for an IVA.
There are many good IP firms that will not charge you a penny to write the proposal and set up an IVA for you if that's the solution that's best for you. There are charges involved but they will be agreed with creditors and will be taken from the money you pay to your IP after the IVA is agreed.
I have big reservations about any company that will charge people already in debt large amounts of money for doing nothing other than introducing you to an IP. You can do this yourself, it only takes a few phone calls. charging to introduce you to an IP smacks of preying on vulnerable people who will pay because they think that's how it works and just seems wrong.
Have a look at www.iva.com and call a few IP's, find someone you are comfortable with. Five or six years is a long time and you need to have good communications with an IP in order for the IVA to be successful.
If you don't have the money to pay the introducer fees - which you don't have to pay it is simply a matter of choice as insolvency practitioners tend not to charge in advance - then will you really have the money necessary to fund an IVA?
Mel is right and this demonstrates the need to speak with an IP firm as soon as possible. You don't want to pay the introduction fees before you have advice on the best course of action. Only an IP can really advise you on the best course of action.
Please phone some more IP firms and get further advice before paying, potentially a lot of money, for something that you are able to do yourself.
Hi
The vast majority of people will not initially speak with an IP directly when approaching an IVA provider, they will speak with an advisor. This will be the same for an introducing company.
Fees are charged by some companies to collect all the information that is needed to assist an IP to draft a proposal, this can be money well spent if the service and support provided matches the cost.
This is not always the case so do research all companies that you speak to.
Regards
