Is £9000 fees in an IVA correct?

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kim642
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by kim642 » Fri Feb 16, 2018 8:48 am
Hello,
My old marital home has sold and my IVA company payplan has been sent the £31,000 equity in my name as there was an order on the house. My debt equals £11,300. I spoke to payplan yesterday who have told me that upon completion and paying off my IVA I will have £10,300 returned to me. So essentially charges of £9,000?? My worry is that that payplan were unable to give me an actual breakdown of where the charges have come from and need to ring me back! My ex husband was also in an iva with them and the property conveyancer let slip that his equity was short to settle his iva and associated fee's. I'm concerned payplan may try and dip into my pot to cover some of his debt.
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Foggy
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by Foggy » Fri Feb 16, 2018 9:38 am
On a debt (is that the full original debt for your share ? ) of £11,300 I would expect there to be fees i.r.o £3700 inc disbursements, plus statutory interest at around £900 per annum.

Were they two completely seperate IVA's or were they interlocking (one payment each month for the both) ? If interlocking then the fees will be amalgamated.

Demand to see a breakdown before they distribute any of the money.
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Lisa Thomas
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by Lisa Thomas » Fri Feb 16, 2018 11:41 am
You are entitled to ask for a breakdown- ask to see a copy of their 'SIP 9 analysis' and relevant resolutions passed by creditors approving the costs.
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kim642
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by kim642 » Fri Feb 16, 2018 5:56 pm
Following my request for a full breakdown of cost's payplan have kindly emailed me with the associated cost breakdowns...5 minutes before the phonelines close I hasten to add!!
They have interestingly added an extra £2,500 on top of the figure I was told was my amount of debt two days ago! I'm being charged 8% creditors interest of £4,132.26. Nominee fees £1,000 VAT, disimbursements and costs of £1,326.54, supervisor fee's of £3,245.56. Does this seem correct??
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Foggy
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by Foggy » Fri Feb 16, 2018 6:45 pm
How long has the IVA been running ?
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kim642
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by kim642 » Fri Feb 16, 2018 6:52 pm
The iva was entered into in 2014. It was originally a joint iva with my ex husband but when we separated over a year ago I split the ivas and repay my three creditors.
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Foggy
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by Foggy » Fri Feb 16, 2018 7:19 pm
On a debt of £11,330 I would expect ( as mentioned above) :

Nominees fee of around £1750 --- so they are low on that one.
Supervisors fees of around 15% ( check your Chairman's report for how fees are to be charged), which would be £1695. So on the high side --- but they may be calculated on a time basis.
Disbursements -- these could be anything --- mine were around £500. These do seem high
Interest at 8% simple for 4 years £3616. So a little bit over there.

Total £7561

VAT could account for a few hundred . A discrepancy of £2,500 on a debt of £11,300 seems a bit off, but I am sure they will be able to explain the figures. If they are allowed to charge supervisors fees on a time spent basis, rather than the usual percentage basis (usually 15%, but sometimes up to 23%), then a chunk would have been spent on separating the arrangements and recalculating dividends etc.
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Lisa Thomas
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by Lisa Thomas » Mon Feb 19, 2018 9:52 am
Al seems reasonable to me, you could ask for a breakdown of the disbursements.
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by Lisa Thomas » Mon Feb 19, 2018 9:53 am
You could also put forward a variation requesting creditors to waive their right to statutory interest.
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