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Hello

Can anyone tell me what is the average cost for fees for a lump sum IVA, I have phoned a few companies just to get some idea and it seems to vary greatly. I know its early days for me but I need to have some idea of what I am doing. I also get calls from the companies I phoned and I do not want to be pressurised into doing anything until I am sure its the right thing.

Just a thought, if I offered 60% of the debt directly to my creditors, are they likely to agree? therefore avoiding the need for an IVA, increasing the dividend to the creditors and not having to worry about ending up BR.

LILY

Hi Lily

These things are always dependent upon the circumstances of an individual case, number of creditors etc, but I would have thought if you work on the basis of £5,000 this is probably in the right ball park. What other figures have you been quoted as a matter of interest?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi again Melanie
The lowest was £6,900 the highest 9,000 I have 4 creditors and the main one is HSBC. It would cost 21,500 based on the info I provided and the creditors would get £14,500. The total debt is 38K. My inheritance would cover this. (I know it will vary with the amount) Sorry to ask but I hate the uncertainty and I am actually already dreading the wait, also I have been advised not to go ahead until the money is in the bank, so to speak.

LILY

Lily

Your £21,500 ought to get creditors at least 40p in the £ (HSBC will insist on this) and pay costs. If you feel that your inheritance will amount to at least this sum, my advice is go for the IVA now on the basis of a future receipt.

So long as your creditors are aware that they may have to wait for the money, that is then their choice. I have done several IVA's like this in the past with entire success.

You may even be able to limit the amount to £21,500 on a good day, therefore leaving yourself some of your Mum's money. A good IP will word the proposal appropriately for you, and put up a good case for you retaining monies to do up your house as you have previously mentioned you would like.

I would certainly not advise you to wait until the money is in the bank. Why? Interest will continue to be added, meaning more of your inheritance money is likely to be used up, and you will continue to have creditors knocking at the door.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Hi Melanie and thank you

I think that this would give HSBC 40p in the pound because one of the IP's said this also and that is where the figures came from. I am positive that my inheritance would be more than this. I dont want to 'escape ' my responsiblities to my creditors but I do need the money that would be left over if this is possible to do, (a lot more than they do). I was managing to pay them all until I lost my job, it was never my intention not too. I had an excellent credit rating. I had to move house due to my kids disabilities, I can prove all of the circumstances that lead to this debt. I know that I signed on the dotted line but I was in a catch 22 situation. If I could just be given the chance of a fresh start and leave all of this behind, it would mean so much to all of us. I thank you kindly for your advice. I have a family meeting with my sisters and brother on 16th, we will also know how much the house is worth and how much to put it up for. (we are aiming for a lower price in order to get a sale) I know this all sounds a bit mercenary but it is painful to keep going back there, we have to move on. I will ring T Charles myself shall I? after this meeting.

Thank you in advance

LILY

Lily - go for it. It is a good idea to ring Thomas Charles as they will help you to find the right IP to take on your case.

Let us all know how you get on at your meeting. We are all rooting for you to get this sorted.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thank you I will

It would be great not to hide away in the back room and to be able to answer the phone, lets hope payplan dont start messing with my head again.

Thanks for everything

LILY

Good luck Lily. Thomas Charles were great with me when I spoke to them - they really put my mind at rest.

Four down, fifty six to go until freedom!

I'm with Thomas Charles and they have been very helpful and supportive. Even down to enquiring aboput your health and checking you are ok personally.

i certainly didn't feel like a statistic [:p]