Yes, your point about older IVA's seem to be more unregulated (if there is such a thing) and do feel a bit cynical about the IP handling my IVA at the beginning and the first 2 years, which incidently resigned 3 years ago. The new IP had to pick up some of the pieces after my old IP refused to answer some crucial questions, mishandled key information and appalling communications on his part lead to further complications causing significant stress for my family and I.
So my view is that as pandy mentioned, IP's are worth every penny (Melanie Giles seems a good candidate [:)]) but I believe due to IP incompetence, some of his or her fees should be cut and paid towards the creditors, its just my opinion.
Unfortunately it appears there are still a few (!) dodgy companies out there. The secret is research who you are thinking of going with, which is where forums like this come in useful. The IP's on here run very transparent practices ( protecting, of course, client confidentiality) and are open in the way they operate. Even with a good company, mistakes do happen ( usually as a result of some communication error), but how they are resolved is paramount.
Anyway -- I am probably "preaching to the converted" here, so will shut up
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Thanks for your comments Matty Baldy, this is precisely what frustrates me, you have good companies that offer individuals competent support, service and knowledge, where in my case its been the opposite with my 1st IP. My view is the OFT need to focus more on the industry where complete transpancy has to be in place otherwise IP Licences are revoked, again just my opinion
Anyway, in the end, I have managed to get back on track and now only got two months to go.
Despite your IVA failing, I hope you managed to resolve in the end.
Yep, that is exactly my opinion too. I have just responded to another forum member with a similar opinion so its clear that members and IP's here are transparant, able to clearly communicate and wished I had access to this site some years ago.
Having said that, I have had a lot of experience during the past few years and look forward to sharing them with other memebers in the future.
Mark.es wrote:
Thanks for your comments Matty Baldy, this is precisely what frustrates me, you have good companies that offer individuals competent support, service and knowledge, where in my case its been the opposite with my 1st IP. My view is the OFT need to focus more on the industry where complete transpancy has to be in place otherwise IP Licences are revoked, again just my opinion
Anyway, in the end, I have managed to get back on track and now only got two months to go.
Despite your IVA failing, I hope you managed to resolve in the end.
Mark
Yep, take care to do your research and find a good company who won't basically shaft you.
I am actually livid with my company if I am honest. It's a prime example of someone profiting from the misery of others and taking the p**s.
I knew nothing about IVAs at the time we went into ours and we basically just went with the first company who offered us help. It's very easy to do that when you are in a mess, incredibly stressed and in dire need of help. They tell you how it's all going to be sorted out for you and you feel so relieved you don't ask questions and let them get on with it.
Never again will I be so gullible that's for sure. I could have come to an arrangement with our creditors myself and done a better job than the shower who did our IVA.
Our IP's fees have worked out at 38.52 % over the 5 years But if you take off the VAT it comes to 32%. No wonder my first company sold out if there were no further fees available due to not being able to remortgage. It is a liitle unfair on the creditors, just hope this VAT lark does not hold up my completion. I feel quite sorry for GT who have done a sterling job in the past 3 months for probably no fees at all.
ITS OVER WE ARE FINALLY DEBT FREE, CERTIFICATE ARRIVED
Can I just add that clients should never hesitate to question the fees being charged by the IPs handling their case should they so wish. IPs must demonstrate a value for money service to both creditors and debtor's, and we should never be afraid to address this.
I actually commend Mark for querying this at the stage of his IVA if he feels that value has not been provided.
Thanks for your feedback, its interesting to note how many members have contibuted to my question relating to fees, I have been silent throughtout my IVA but now that I am nearing completion allows me to be more open and free, rather than getting my head down to meet my obligations during my IVA.
Melanie, I appreciate your acknowledgment about my viewpoint on the fees and the right to question them so late in the IVA. I am sure you understand that during the early stages, focus is mainly meeting the repayments and protect your family which comes first above all, where as now my mind is more clearer in seeing things that you were not fully informed beforehand.
As with any service, you do expect a certain level that meets the needs of clients, rather than abuse his or hers authority just becuase your in a vunerable position where you have very little options. The IP is considered as a very important part of making the IVA succeed, but I had no confidence with my first IP
The creditors had asked to extend my IVA for 12 months as compensation due to lack of equity in the property,I believe this is common practice in the industry. My question is whether compensation has to come from the IP who dratfed the IVA in the first place? They proposed the equity clause, how can it be the fault of the client if house prices decrease or the fact that the financial market is in a shambles where you can not borrow? Its a grey area for me and feel very strong about this point..
And who exactly would respond to our calls of IP's not giving value for money?? Would it not just be pointed out that creditors accepted the fees structure so its nothing to do with the customer??
I cannot imagine any IP agreeing 50 odd months into an IVA to lower fees!!
As for the equity release or extra payments in lieu what is written in your proposal Mark.
Regarding my post about outside contact about mis selling of ivas I asked because we all to often hear of bankruptcy assist firms approaching people.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
I would be keen to know what your IP is relying upon in extending the IVA. Was there a need to return a minimum dividend? And does the proposal allow for such an extension without your agreement or that of creditors? Is there any equity in your property now?
A reputable IP should always be in a position to detail the basis of their fees and what has been charged, together with justifying that all parties are receiving value for money. This is clearly set out in Statement of Insolvency Practice 9 - which deals specifically with Insolvency Practitioner's Fees.
As far as I understand, the creditors needed a minumum return on Dividend. Whilst meeting all monthly payments with no arrears, there was no equity in my property to remortgage during 4th year and the minumum divened was not met.
There was no mention or agreement within the origial terms of my IVA on how to handle my property in the event there is no equity should the situation arise, which in the end it did. This is where I asked the question in writing to my original IP, what will happen if there is no equity in my property and what will happen if I am able to get a remortgage, I asked these questions halfway through my IVA (2008), which he was unable to answer nor advise.......
To date, there is no equity in the property and virtually impossible to remortgage due to the current financial climate.
I checked the Statement of Insolvency Practice paragragh 9 document and reading the details suggests that no breakdown of such information was found in MY original proposal nor the variation made 12 months ago. All figures were rounded as Nominee and Supervisor fees, Variation fee and VAT, nothing more.
I challenged my points again before the variation but the only choice that was given to me was to go bankrupt, which I challenged the IP to do, knowing that it would cost them a significant amount of money, which then led to extending the IVA for 12 months.
There are many questions I am sure Melanie and will only answer questions posed by qualified IPs like your self. Hope this answers your questions, if you have more, I am more than happy to answer either on the forum or offline.
