www.iva.co.uk

Hello peeps, hope you are all well

I've just had my IVA proposal to sign and send back and I've got a qauestion about the fees and if they are ok.

My monthly payments amount to a divided of 26p before IP fees.

However after the IP fees are taken my dividend to creditors drops to 13p to the £1 as my IP is to take £7670 in fees and disturbents. Am I thinking right that this is a little excessive?

Thanks for any replies in advance

M

I wouldn't be concerned with them. The fees are usually modified by creditors at the time of the meeting. A good gauge of how much fees are going to be is to take the first 5 monthly payments as the nominees fee and then 15% of further realisations for the supervisor fees.

Thats great, thanks claire.

I'm just a bit worried that 13p won't sound very attractive to my creditors.

There have been proposals accepted for a lot less if the best offer is out there for your creditors you shouldn't have a problem. All the best. x

Cheers Lesley

The IPs fees should have been discussed with you prior to the finalisation of the proposal - after all you are the one who is agreeing that they are reasonable in the first instance. Creditors will almost always modify IP's fees, so in a way this may be academic, however you should have understood the way the proposed fees were being calculated.