Where is all the additional money going

[alison_r]

I have just recieved my iva proposal from Synergie (yes, I have only just read all the entries saying don't go with them!!)
I owe just over 38K and with the repayments will be paying back 24K, so why on the proposal is the dividend only around 37p for every pound??? Where is all the additional money going or am I getting this all wrong??

[Lisa2009]

Have you taken into account the nominee and supervisors fees?

[alison_r]

I haven't, but just doing the maths that would mean that nearly £15k was going on fees and I would only be paying back £9k. That seems far too high a figure for fees!!!!

[Chris.z]

That is about right with some of these bigger firm's. My fee's are way more than the dividend I am returning. Think that is why the new TIX is being introduced, and prior to that alot of IVA's being refused.

[alison_r]

Chris, What is a TIX?? Sorry I really do not know everything as I was too embarrassed to discuss this with anyone and just went to the first iva company I found!!

[whichwaynow]

My fees for the F&F were £11000.00 I remortgage for £44000 and my creditors recieved between them about £32900.00.

[Chris.z]

Hi Alison, It's a new proposal whereby fee's are being capped.... I think! I don't know that much either, an expert will be along soon though !

Chris

[alison_r]

I'm not too sure what to do now!! I haven't signed and sent off the proposal yet to Synergy, even though they have taken one payment off me. So do I stop using them and go to someone who will not charge as much?? If so any recommendations?? Or do I try to do a DMP and see if that's possible??? Really do not have a clue but need to do something and fast as I haven't paid any debts for 2 months as Synergy recommended!!!

[kpw]

hi At your debt level these fees are too high. Your nominee fees that the ip takes for presenting the proposal to the creditors and the supervisor costs that the ip takes annually for administering the agreed IVA, should be in the region of £6000-£8000 altogether.What you will find is that the creditors will put a maximum fee that they will accept to agree the proposal.This should then be reflected in the final dividend should all other aspects of your proposal be satisfactory. However Melanie will be able to advise on the best way forward, Best of luck
Maybe post a few details eg debt level. Number of creditors. Whether you have a property and if you do how much equity is there. what are your main priority expenses per month. what is your income. Are you married or with a partner and what are their details.Are your circumstances i.e income and expenditure likely to remain stable for 5 years. then it will be possible to see if IVA or DMP would be advisable.

[alison_r]

Thanks KPW!!

I have just been on Melanie's website and emailed her, didn't want to phone as it is Saturday night and didn't want to interupt her evening!! Hopefully I'll get to speak to Melanie soon so that I can try and sort things out and get no more grey hairs!!! I have been reading many of the forums and Melanie does always seem to give some cracking advice!!

[MelanieGiles]

Hi Alison

If your current IP have sent you an IVA proposal to look at, what is the breakdown of their fees and the explanation about them. This should be clearly disclosed within the proposal and discussed with you beforehand.

As IP's we must be able to justify that creditors are receiving value for money from the fees we propose to charge - as in reality it is them that pay them. You would still have to make the same payments whether the IP charged or not, but there does need to be an appropriate explanation for the charges, and to be frank these should have been discussed with you and agreed prior to the proposal being drafted.

I am very happy to talk to you directly about your case, and if we can help you make the right decision about dealing with your debts we will be delighted to help.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Adam Davies]

Hi Alison
You are right to take a second opinion.
A 37p dividend on debts of 38k will be approx 14k,leaving 10k for fees...........still too high.
TIX are the insolvency exchange who represent many creditors for IVA voting.They have introduced a new fee structure for IPs and on your payments of £400 per month the IP would receive approx £5200,a big difference to Synergi,s proposed 10k
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[alison_r]

Hi Andy,

Thanks so much for the response, how would I go about finding someone who deals in the TIX system. It's just that the lower the fees the more dividend and so the more chance of getting it agreed!!!

Alison

[alison_r]

Hi Melanie,

Looking at the proposal, their fees are: £3819 Nominee's fee, £255 Supervisor Disbursements and £5875 for Supervisor Remuneration.

I have sent all my details through to you last night from your enquiry form!!

Thanks

Alison

[MelanieGiles]

There is no "TiX system! TiX are a firm of voting representatives who act for some creditors, and have recently introduced a new protocol for IPs to follow with regard to the proposal of IVA and fees chargeable. This may not affect your case depending upon who the creditors actually are, and many IPs are not yet adopting this protocal which is surrounded by controversy at present.

The Nominee's fee you have been charged is exceptionally high, I would not expect to see a fee of more than £2,500 plus VAT, and in a simple case this can be much lower.

I shall look forward to receiving your details, and one of my managers will be in touch shortly.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp