effect on IP if IVA i s settled early?

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Shah.mh

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Post by Shah.mh » Tue Aug 03, 2010 9:50 pm
Would it be possible to say that if you are looking to settle your IVA in the early days your IP who looks after you IVA will be loosing out i.e they won't be getting the charges as they would of over five years. Or does it not make any difference to them?
 
 

kallis3

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Post by kallis3 » Tue Aug 03, 2010 9:51 pm
Their charges will be reduced as they won't be administering for the full term.
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31101932

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Post by 31101932 » Wed Aug 04, 2010 8:24 am
My IP fees were on a percentage basis, so they would receive 20% (+ VAT) of all money received.

On this basis a Full and Final settlement would not have lost them any money, although the extra administration work in putting the offer forward and calling the meeting of creditors would have cost them money.
 
 

Michael Peoples

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Post by Michael Peoples » Wed Aug 04, 2010 9:35 am
Regardless of how the fees are affected the IP should put forward the variation if it is the right thing to do. Even if it means a reduction in fees it is still good to get a file closed, creditors paid and the client debt free.
Michael Peoples | McCambridge Duffy Insolvency Practitioners
http://www.mccambridgeduffy.com
If you would like to talk to me about proposing an IVA or have any questions at all please visit www.mccambridgeduffy.com
 
 

Shah.mh

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Post by Shah.mh » Wed Aug 04, 2010 1:32 pm
Thanks to everyone who has replied to my concern, it has been very helpful.
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