www.iva.co.uk

Hi,

I am now into single figures with regards to monthly payments for my IVA (9) and with the extra money I have paid in due to Bonuses at work I am on my way to paying 100p in the pound to my debtors and all within 5 years.

although this sounds fantastic I have had a letter this morning letting me know that the current IVA management company I deal with (Simple Debt Solutions) have now been acquired by Creditfix.

I am due to call them tomorrow to introduce myself and also ask a few questions I have rattling around in my head but before I do I wanted to ask you guys.

currently the Fee SDS charge is 15% of every payment I make, Creditfix are looking to increase this to 23%, if they succeed does that mean that I will have a smaller chance of hitting that 100p in the pound? the reason for my concern is that when I get to 100p in a pound I can apply to have th 8%interest waived which will prevent me from going for a 6th year and I'm worried this increase will make the banks want to recover that money by making me pay longer.

any advice would be fantastic.

Best Regards,

Darren

If you don't hit 100 p in the pound there will be no statutory interest triggered, so no need to worry about that. And, yes the fee increase will lower the payments the creditors get, if it is agreed.

They cannot seek any variation of the terms of your IVA without your written agreement - and I would think that in today's economic climate coupled with the attitude of creditors to IP fees - it is very unlikely that they would get any increase agreed to be frank.

Thank you, I will be making a call just after 9am

How did you get on when you spoke with Creditfix today Wa1shy?

Increases in fee's only benefits them and you dont have to say yes.
Stick with your original terms and conditions and look forward to completing your IVA.

Morning,

I spoke to them yesterday and called back again this morning to chase up some answers.

they have said that the banks have already agreed to the 23% increase. they also said that although I may pay 100p in the £ the dividends going to the creditors my be less.

when I said that means I wont be paying 100p in the £ then it sort of went without an answer. one thing I have noticed though is that at the end of this IVA I started out originally owing £26000. by the time the IVA completes in July I would handed over £39000 in cash. (and thats before they charge me the 8% interest)

what I didn't realise at the time was that running an IVA takes a lot of additional money and even then the banks aren't getting all the cash back. maybe if the banks tried to handle this better themselves and not leave people with no option but to go to IVA companies they would of have got more money.

sorry im not trying to offend any IVA practitioners out there that are trying to earn a living but thats a lot of money to pay back.

i suppose really im just hoping to have this completed after 5 years but can see them applying for the 6th year so that they can start to claim 100p in the £

We are also with Simple Debt Solutions but havent had any letters regarding Creditfix? Like you we are also on track to pay 100p in the pound and Simple Debt Solutions are supposed to putting forward a variation of terms to remove the statutory interest. I thought everything was running a bit too smoothly..... I think we need to make a few enquires

I have also received this letter from creditfix and am refusing to sign to the new conditions. I am currently in my 4th year and half way through my 5th year they will ask me to see if I can pay off the debt through capital on my house. This means I will have to pay a lot more in the end.

I am not sure how I deal with this and if I have to have creditfix and one of their Insolvency Practitioners.

Any advice to us in this position would be gratefully accepted.

Well this IP is not offended at all - but would be very keen to know which creditors have agreed to the 23% increase if a variation meeting has not even been called. If 23% is suitable for one IP firm, then it is suitable for all of us in my book.

Surprise surprise, I too had the letter yesterday. The exact line states 'Creditfix is to seek agreement with your creditors that the fees will increase to 23%' then the confusing line in bold and underlined states: This adjustment does not affect your personal insolvency agreement or your current monthly contributions. The cost is borne by your creditors and reflects increasing costs of administration.
The letter is asking us to sign to and confirm the agreement and the understanding of the above line.
The actual signature line states 'by signing the undernoted, I agree to and understand the above noted changes to my IVA'

I'm not sure that I understand that the increase in fees will be borne by the creditors, are my creditors going to pay the increase then? I am being asked to sign something that hasn't yet happened as they are yet to seek agreement with the creditors - I am slightly confused, am I giving them the go-ahead to increase the fees or approach my creditors to ask to increase the fees?
We have been waiting for a variation of our proposal to remove the interest as we are due to finish mid 2014, I wonder if this is why there has been a hold-up?

Does anyone have an understanding of what this could mean, can anything happen if we do not sign this document? There isn't a time line stated.

If your IVA is not projected to return 100p in the £, those additional costs will be suffered by creditors and you may not therefore be affected - but they will still need your express agreement to amend the terms of the IVA, and I guess you had no say so on who your case was being transferred to?

Our IVA is projected to return 100p in the £ and to complete almost 12 months early (as long as interest is removed) Our new IP will be Sue Wrigglesworth. I think we need to try and speak to someone before signing anything at this point.

I was never worried about how much the fees were as they had no bearing on what we paid each month. However, I have to agree with Mel - if one company are charging 23% then I feel all should be able to.

Is there a requirement for you to pay a minimum dividend of 100p in the £, Rubyred? If not, then you may also not be affected by this variation.