Excessive fees

Get expert opinion. This is the place for new questions to be posted.
4 posts Page 1 of 1
User avatar
alouise
Posts: 2
by alouise » Fri Jan 19, 2018 7:32 pm
I have been to see an IP practictioner today. I am needing a cVA to save my business. My cva is looking like £40,000 and I can only afford about 300 per month for business to work. They are saying £18,000 in pot wouldn’t be enough after they take out roughly £8,000 fees!!! Aren’t these fees a little excessive as it will be eating into the % I can pay back!
It was similar for our IVA, both myself and my husband will each need an IVA for about 50,000 each due to been a guarantor for some debt on business and for our government start up business loan. We can only really afford £500 jointly for £250-300 max each. He says this wouldn’t be enough after feees as it would only pay off 15-20% of debt. I am worried their fees are so high that will stop us paying off a good enough % but this is literally all we can afford! A lot of debt is made of of guarantors, so would be not far off being more than what we currently pay personally for our debt (if that makes sense!).
I am determined to keep the business going!
User avatar
Foggy
Forum Expert
Posts: 26560
Contact
by Foggy » Fri Jan 19, 2018 7:41 pm
Fees are pretty much standard for an IVA at around 15% of the monies realised, plus nominees fees. Although there are a couple of firms now trying for 23% (odd figure I know!). I would, in any event, suggest a chat with several firms as they will work out disposable income differently as well. Try to find one well versed in the problems faced by the self employed, rather than an IVA factory which will not accomodate the different circumstances you will face compared to those on PAYE.
User avatar
alouise
Posts: 2
by alouise » Fri Jan 19, 2018 8:09 pm
Thank you for information regarding fees.
I don’t suppose anyone knows if you have to include overdrafts? I am quite happy to keep this and with it been guaranteed by us, it would help our personal IVA as well as CVA for business. But he seemed to push us into including it, but obviously if it is in he get more money from the IVA! Is this our choice or do we have to include it?
Thank you for your quick advice
User avatar
Foggy
Forum Expert
Posts: 26560
Contact
by Foggy » Fri Jan 19, 2018 9:07 pm
alouise wrote:
Thank you for information regarding fees.
I don’t suppose anyone knows if you have to include overdrafts? I am quite happy to keep this and with it been guaranteed by us, it would help our personal IVA as well as CVA for business. But he seemed to push us into including it, but obviously if it is in he get more money from the IVA! Is this our choice or do we have to include it?
Thank you for your quick advice


ALL unsecured debt has to be included --- overdrafts as well. This will mean that you will also have to move the bank account to lessen the risk of the bank trying to offset income or closing the account without warning.
4 posts Page 1 of 1
Return to “Ask IVA Forum and Industry experts”

Who is online

Users browsing this forum: No registered users and 13 guests