www.iva.co.uk

I think this will have been covered numerous times, but here goes again....

when quoting 'p' in the '£' for making an offer to creditors, is this before or after IP fees are taken into account?

thanks

rickyg

I think the pence in the £ is the actual dividnd the credior gets, after IP fees.

I am sure someone will correct me if I am wrong, but this is what I understood to be the case

Hi

The percentage dividend is indeed what the creditors get rather than what you actually pay into the IVA.

So your total payments are always higher than the the percentage quoted.

I have always thought this is a little misleading for people without a maths, law or accountancy degree.

I have none of the above!

In the bad old days some IPs produced IVA proposals showing only the dividend before costs. That practice was much disapproved of as, given that at the same time fees were on a time cost basis, creditors would end up voting on a proposal without any clue as to how much they would ultimately get!

The current way where the debtor sees the top line and the creditor sees the bottom line is probably the most sensible way of doing it.

Ian

As others have stated the p/£ dividend quoted should be that after I.P fees have been taken out.