My IP is charging in excess of three grand to settle my IVA.

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karen179

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Post by karen179 » Wed Apr 26, 2017 11:53 am
My IP is charging in excess of £3000 to settle my IVA. Which means my initial debt of a year ago has increased from £15,000 to £20,000. How is this legal? And if I cancel my IVA because of the (loan shark like) behaviour will I have to pay any fees to the IP?

kallis3

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Post by kallis3 » Wed Apr 26, 2017 12:32 pm
Hi,

Was your original figure your overall total debt or what you agreed with your IVA? You will always owe the full amount of your debts plus fees and possible statutory interest. If you let your IVA fail you run the risk of creditors adding on interest and charges which means you will end up owing more.

Which company are you with?
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

Foggy

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Post by Foggy » Wed Apr 26, 2017 1:11 pm
The fees are those agreed by the creditors and yourself when you proposed the IVA. If you have asked for a "settlement figure" they will include the full original debt, plus fees and possible statutory interest. If you wish for the IVA to finish early, what you need is to make a "Full and Final Offer" . This is based on the number of payments left multiplied by the monthly payment and is usually a much smaller figure.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014

Lisa Thomas

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Post by Lisa Thomas » Thu Apr 27, 2017 8:58 am
The IP fees are drawn from the assets, so effectively are paid from the creditors pockets.

It's not something you would need to worry about unless you had sufficient funds to pay everything off in full, which would then mean the entire debt plus interest and total costs as Kallis pointed out.

Both you and the creditors agreed to these costs when you signed the paperwork.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk

chrissy12345

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Post by chrissy12345 » Thu Apr 27, 2017 1:06 pm
i'd ask the IP to justify why that kind of charge is fair and reasonable, which he is required to do, and if he can't, report him.

Foggy

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Post by Foggy » Thu Apr 27, 2017 2:55 pm
chrissy12345 wrote:
i'd ask the IP to justify why that kind of charge is fair and reasonable, which he is required to do, and if he can't, report him.
The fee structure is contained within the proposal and Chairman's Report -- it shouldn't come as a surprise and was agreed by all parties at the time.

If the OP's full debt was £15,000 I would expect Nominees fees in the region of £1500, then Supervisors fees at 15% would come in at £2250 if he paid the full debt. Then there would be in the region of £300 - £500 disbursements ... so the three thousand mentioned doesn't strike me as unreasonable.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014

kallis3

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Post by kallis3 » Thu Apr 27, 2017 3:17 pm
Agree with Foggy.
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

chrissy12345

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Post by chrissy12345 » Fri Apr 28, 2017 6:12 am
Over the course of 5 or 6 years no one is likely to grumble over those costs. Over a year - different story. It's irrelevant what is in the proposals. The IP still has to justify it, statement of insolvency 9 says so. So if he can't do that then report him.

kallis3

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Post by kallis3 » Fri Apr 28, 2017 7:12 am
I'm afraid I would not contest it. Fees have been agreed and I would just be happy to get it sorted.
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
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