www.iva.co.uk

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I know when we had our proposals it stated that so much would be sent to creditors over a certain term so i think the first payment will equal 6p/£ of what you have borrowed but by the end of the IVA you will have paid across the 32p

Cant help with anything else im affraid

The nominee's fee covers the work done by the IP from the time they are instructed to the date of the creditors meeting. And the supervisor's fee looks like £1,000 per year which is reasonable. You would have agreed these fees at the time you signed the proposal.

The reference to dividend payment indicates that they will be distributing some of your money to creditors ie 6p in the £ within the next 60 days. The 32p is the amount that was estimated would be paid over the course of the IVA - ie over a five year period.

It really is not fair to bash away at IP fees. The creditors have done that very well over the last year or so, to the extent that it is getting very difficult to operate in practice - and to try and guess what our fees are with conflicting modifications from all creditors is immensely challenging.

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A lot of people seem to comment on the fees that IPs are paid, but surely if someone goes to a professional, be it IP, solicitor or accountant they know that they will be paying a fair amount for the service.

At the end of the day, as Melanie says the fees are detailed in the proposal. While I know what it's like to be panicking and not always understand everything in the proposal your creditors have read it and agreed to the fees.

Explaining the basis of proposed fees is a very important part of an IP's job in the early stages of engagement, indeed in my firm we get our clients to sign and return a letter of engagement confirming that they understand what the costs are likely to be - and this process ought to be followed in all IP firms.

When I was a partner in your IP firm several years ago, we also had that process in place, so I wonder why this was not made clearer in your case? Perhaps there was no face to face meeting even though you are self-employed?

The specific bond is an insurance policy that has to be taken out by an IP to effectively insure against him/her running away with your money!! Postage and stationery is generally based on the actual costs of postage, plus a costing per page for paper. In some firms, mine included, paper charges are not charged, but I do know of a well known firm who used to charge 25p per sheet - which I think that any of us would deem to be excessive, and thankfully the creditors with the advent of the IVA protocol seem to have stamped out that practice.

Never apologise for posting an opinion on the forum. That is what the forum is about, and some subjects will be closer to our hearts than others. IP's generally are pretty sensitive about their fees at present - some firms have been put out of business due to severe changes in the way charges can now be agreed with creditors - and others have simply decided that this work is too unprofitable and are concentrating on other areas. It is such a shame, but those of us who are left have to live with it for the moment.

Your opinion is just as valuable as mine - and any debate is good debate. I remember our recent chat in Slough, and enjoy your contributions to this forum which are inspirational to people who may be thinking of entering into an IVA or those who already are.

And you have made a very good point which new posters ought to take away - make sure you understand the terms of your IVA, and read through it carefully before signing it AFTER having a meeting with your IP to get any last minute questions answered. This is time well spent, and ought to avoid confusion at a later stage.

The only reason I think an IP's fees would be of interest to me is if they had an adverse effect on my proposal resulting in a no! if the creditors are happy with my payment & also the fees then great, 5 years of carefulness then clear is my only aim. You can't I guess expect professionals to work for pennies I wouldn't (assuming I was at all professional), would have thought a lot of corresondence between IP & creditors would have taken place?

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Most of my files are at least 3 inches thick by the end of the first year. That might give you some indication of the amount of work IPs actually do for their money!

Why have the posts been removed?

It looks like mtl has deleted her own posts Steve.

Oh right thanks viki, I obviously missed something. It will just confuse people now but would have been good for people to see the explanation of the fees, for those that were thinking along the same lines as mtl.

Does the fact that creditors are being stricter on fees not mean that most IVA firms are of better quality,ie not just in it for a fast buck(as was the case a few years ago). I wish I had read what Mtl had to say.

Hi
I think that IP fees some years ago did give cause for concern,when they were charging on a time cost basis.
In my own IVA I paid in a total of around 35k with 16k going to the IP[from memory]and this was over a three year period.
The problem now is that the fee structure doesn't make low monthly IVAs viable.
I think that there should be a minimun nominee fee of 2k,afterall the same amount of work,on average,goes into each case regardless of the monthly patyment
Regards