We didn't choose percentage based fees at all - they were enforced upon us by creditors and often bear actually no resemblence to the level of work we have to carry out. I always used to fix my fees to an annual sum, which worked very well for both us, our clients and the the creditors. I am not sure that we actually return better dividends to creditors nowadays, but our own income has been cut by over one third and that has been very difficult to swallow to be frank - and we have had to make severe cuts merely to stay in the marketplace.
My IVA was always based on 100% dividend - so I paid the fees too.
My fees were around the 8.5k mark (haven't got paperwork to hand) and yes this may seem a bit high but when I consider the interest I would have paid, the fact that I couldn't get myself out of the situation I had gotten into and the support that was provided throughout the term of my IVA - I'd say this is fair money!
And also, in year 3 there was a modification of fees (they actually went down as far as I can remember).
To be honest, considering the fees are agreed with creditors, I don't see why anyone not paying 100% should overly stress about it - look at the big picture - you're getting out of debt, and your IP wouldn't propose a dividend they didn't think would be accepted!
In today's marketplace Kazzy those fees are a lot higher than average, but I am glad that you actually saw value for money from the work your IP firm carried out for you - especially given that you were paying them. Even though the fees are high, you would have paid far more in interest and collection charges I suspect.
I've never had a problem with my IP fees either - they're looking after me and my finances for a period of time and then the remainder of my debts are written off.
I know I would have paid far more in interest and charges - it was costing me a fortune before the IVA!!
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
I, too, am happy with the fees I pay. My IP company has offered a premium service since day one; I have never felt as though they're (Melanie Giles) in it simply to make money. I suppose that's what it boils down to... Are you happier now than pre IVA and do you feel valued and supported by your IP? If the answer to both is yes, then surely you're getting value for money?
My IP has earnt her money and deserves every penny from me. I had numerous problems initially but hope I've not been too much of a burden of late eh Melanie!
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
I'd try not to worry about the IP fees if I were you. Just wondering which company you are going with? As long as it is a reputable company things should come good in the end. Our IVA concluded in August and just to get to the finish line was absolutely amazing, regardless of what the IP fees were. best wishes.
Oscar
need to smile today? go on check out my blogs - I'll add to them regularly
Our IVA's over YIPPEE unbelievable!Seems like yesterday it was approved despite everything
if ip did not charge fees there wd be no ips operating why wd they offer the service for free or next to nothing if my iva goes through i will be paying fees but the fees will be a whole lot less then intrest. uk is a western society and no one does nothing for free or next to nothing. if people saw true poverty like places in india or south america like i have years ago. where if u r in deebt your problem is the atitude.
as jerry garcia says "we dont own this place as tho we act as if we do wonder where we will be if we put our bills on the plastic we can run but we cant hide from it we never get far from what we leave behinde"
"Since it cost a lot to win
and even more to lose
You and me bound to spend some time
wondring what to choose
Wait until your deal come round
Don't you let that deal go down"
Robert Hunter, Jerry Garcia 1971
Don't worry about the fees Estel - the creditors will modify the fees if they think they are too high.
The IP sorts out your IVA and then monitors it for the full term so they earn their money.
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
I haven't even give the fees a thought, I dont even think about what my p in the £ is, the only thing I concentrate on is the finishing line in 3 years time. We rent our house so there is no equity to deal with just need to get 5 years finished then I can honestly say I paid back what I could. I couldn't have done anymore. As long as the creditors are happy and the IP is happy why worry.
If life is what you make it, I must have been in a strange mood when I made mine
