fees, does it depend on the size of the debt?

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Post by rodmunch » Sat Jul 31, 2010 12:48 pm
how much on average are the fees taken by the IP or does it depend on the size of the debt?


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Post by jtomo64 » Sat Jul 31, 2010 1:49 pm
No the size of the debt does not matter.
Generally, with a few exceptions, the fees are as follows.

The first 5 months payments will go to your IP, after that approximately 15% of each monthly payment goes to your IP.

For example:

If you pay £300 per month over a 60 month IVA.

5 x £300 = £1500
55 x £45 = £2475

Total fees: £3975

These fees are a general guide and I am sure an expert will advise further. However you should not have to pay any fees up front as these will be included in your monthly payments.
Last edited by jtomo64 on Sat Jul 31, 2010 2:18 pm, edited 1 time in total.


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Post by MelanieGiles » Sun Aug 01, 2010 12:39 am
The subject of IP fees is a complete lottery to be frank - with different creditors having different policies. We generally have to accept the fee basis which provides the lowest charges, which is very unfair and makes it difficult to run some cases.

The above example provided by jtomo64 is just one criteria of several floating around at the moment.
Regards, Melanie Giles, Insolvency Practitioner
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