my IVA is due to be proposed any time now. My IP has worked out my plan and I am trying to go for a full and final with support form my employers.
I got a figure earlier this week from my IP, which I think I may be able to meet. The trouble is, that when I confirmed it with my IP, they said it may not be enough (even though it is exactly what they suggested as a possible amount) and that I should pay them £1,000 in advance in case the IVA is rejected and they dont get any money for their effort.
Am I the only one who thinks this is unethical and totally unreasonable?
Did this happen to anyone else?
IS this sort of request even? Should I take seek legal advice against my IP?
Im lost and totally deflated as i thought i was on the last leg of a long journey, and they have been good up to now. Perhaps I am naive and im just a pay ticket to them?
Your IP has clearly done a lot of work on your behalf, and whilst it is unusual to ask for money to be retained pending the decision of creditors, there are probably good reasons for their request in your case.
When IVAs first were introduced, you would struggle to find an IP who would act for you without being paid in advance, and it is something on occasion I have asked for in the past - I doubt that you will find an IP who has not.
I assume that your IP will have fully explained to you the reasons behind his/her decision, and as you say you have already received good service from them. Why do you feel it is unethical to agree to pay a contribution towards the IPs fee, and did you discuss your concerns with the person acting for you at the time of your meeting?
If your IP is a reputable company, and I am sure that they are, then you will not be viewed as a "pay ticket" but as a valued client. However we are also running businesses, and whilst in the majority of cases we can take the risk of not being paid in advance due to a high success rate at creditors meeting stage, some cases are more risky and this does have to be balanced.
Can I suggest that you have another word with your IP on this subject to gain further understanding of their stance.
I understand and fully appreciate what Melanie has said but I, as a lay person would be a little bit put off by this. I would just check out the IP concerned at www.iva.com for other users reviews on this. I may be totally off the mark but if the proposal put forward stands a good chance of being accepted, (not much point in doing all the work if it doesn't) then why would it be necessary to pay that much upfront?
Piston broke, thats how I would think of it. How can you possibly be expected to know that youre doing the rignt thing?
Good luck anyway.
Last edited by freelili on Sun Jan 11, 2009 11:13 pm, edited 1 time in total.
I go with freelili - I have asked for fees upfront in the past but this related in the main to the first months contribution. We decided ages ago to forego this. What concerns me is that the IP is now asking for this fee rather than ask at the beginning when you instructed him/her.
Another point is that he/she is unsure that the amount offered is reasonable.
I would search out another IP who is prepared to look at your circumstances and agree your F&F without asking for upfront fees.
Last edited by David Mond on Mon Jan 12, 2009 1:36 am, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I genuinely believe my IP is reputable and up until I got the email (Yes, email, not meeting, nor phone call!) asking for the money up front I would have recommended them to anyone on this forum.
I think that what upsets me most is the fact i was given the figure as a guide on full and final settlement figures, and whils i was told it was at the low end of what would be expected, i was told they would be happy to propose the figures. It was my IP who calculated the figures, so im surprised they are suggesting a figure in which they have no confidence.
Only two days ago, I went 'cap in hand' to my employers and managed to secure the funding to present the case as suggested, so im gutted that i have done this for a level of contribution now not deemed sufficient.
The upfront, non returnable fee was just the icing on the cake i suppose, having had no mention of this at all in the past, nor any suggestion ever that this would be required.
I will reiterate, i believe the comapny to be very experienced and highly regarded, but this has surprised me beyond belief.
I feel like I have no other choice but to pay them, and yet again, I feel I am being exploited in the same manner I have been before by credit card companies with crazy interest rates (and yes, I totally accept responsibility for the original debt - I spent the money
I agree with David and Lily on this - I would speak with another IP and get a different perspective on this.
It will cost you nothing to do this.
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
you know what? its sorted.
i spoke to my IP and expressed my concerns. We went through a few things and we have a plan to go forward.
i wont say i wasnt surprised or disappointed, but given my IP is really good, i not surprised or disappointed we came to a resolution.
im not payng up front.
thanks Sue - told you i would post and let everyone know youre good!
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 am glad you got it sorted without an upfront payment!
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
