iva costs

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heaton

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Post by heaton » Fri Aug 13, 2010 4:28 pm
Hello

I am sorry to post another question on here but i am confused about the costs on a iva. I have heard these range from £3000 - £10000 and was just confused how these work when paying into iva.

if i had a debt of £30000 and over 5 years i paid into iva £15000 would that mean that my creditors would only get what was left over once iva costs been taken off, i have seen posts where they said iva needs 25P in £1 minimum to be accepted but my creditors wouldnt be getting anyway near that if the iva costs were taken out. I am waiting for my meeting with ip next week (gone thru cccsva as was told these are one of the cheapest)

could someone please explain to me how this works, sorry if i am being very thick !!!
 
 

karen

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Post by karen » Fri Aug 13, 2010 4:38 pm
Dont worry about posting your questions that is what the forum is for. It takes a lot of getting your head around but stick around on the forum and you'll learn a lot. I'm afraid I cant answer your question but I'm sure someone will come along and help you.Good luck.
Karen[:)]
 
 

Adam Davies

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Post by Adam Davies » Fri Aug 13, 2010 8:32 pm
Hi
The costs of an IVA are taken by the Insolvency Practitioner from the contributions that you make over the lifetime of the IVA. This is all agreed and authorised by your creditors.
If you pay in 15k on 30k of debts your creditors will get approx 10k, giving a dividend of 33p in the £.
Your contribution level and the service level of your IVA provider is the most important aspect of the IVA, not costs as these are dictated by your creditors.
I am sure that Mel will agree that CCCSVA are no different to any other IVA provider regarding fees

Regards
Andam Davies
 
 

MelanieGiles

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Post by MelanieGiles » Fri Aug 13, 2010 11:47 pm
Mel does absolutely agree with this! Who told you that CCCS were one of the cheapest firms? They do not run their IVA section in the same way as the "charity" side of the business, and from what I have seen their fees are the same as most of us charge - which is indeed dictated by creditors in any case.

Unless you are planning on repaying your creditors in full over the five year term, in which case an IVA is probably not the best solution for you, I personally would not worry too much about the fees ans they will be funded by creditors by agreeing to accept the balance of your contributions - in the way Andy describes above.

Good luck with your IVA - and let us know how you get on.
Regards, Melanie Giles, Insolvency Practitioner
 
 

luluj

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Post by luluj » Sat Aug 14, 2010 9:03 am
Having spoken this week to our IP and cos we are paying 100% back due to inheritance - we now have an extra £20000 in statutory interest to find ! Wasn't expecting that one ! Our IP fees have also changed from what we were expecting at around £7500 to £10000 ! All in all it doesn't pay to inherit I have found !!!
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MelanieGiles

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Post by MelanieGiles » Sat Aug 14, 2010 10:59 am
Statutory interest is no longer a requirement in IVA protocol cases which are largely used now by most insolvency practitioners.

What a shame this was included in yours luluj. Why are the fees so much higher?
Regards, Melanie Giles, Insolvency Practitioner
 
 

luluj

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Post by luluj » Sun Aug 15, 2010 7:09 pm
They haven't given me a reasonable answer yet as to why - am waiting for Declan to hopefully be able to tell me why - have emailed him and a quest on the stat interest as it seems alot of money and alittle unfair especially as 100% is being paid back - but we fully appreciate we spent the money so we have to pay it back - but not going to hand it over without a few questions
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MelanieGiles

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Post by MelanieGiles » Sun Aug 15, 2010 8:41 pm
It will be because your IVA proposal provides for statutory interest. As you originally agreed to borrow this money and pay interest, I am now sure I now understand why you feel it is unfair to pay it back with interest.
Regards, Melanie Giles, Insolvency Practitioner
 
 

Skippy

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Post by Skippy » Sun Aug 15, 2010 9:23 pm
Surely if statutory interest is part of an IVA proposal then it's not unreasonable for DFD to add it on to the amount payable from a windfall?
 
 

kallis3

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Post by kallis3 » Sun Aug 15, 2010 9:31 pm
I would have thought so as well.
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luluj

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Post by luluj » Mon Aug 16, 2010 5:54 am
It feels unfair a little as we were on track to pay back 100% off our own backs with extra overtime payments etc over the five year period - had we have done that we had been told no stat interest would have been payable - but because I have inherited then stat interest becomes payable !
I know we spent the money so we are due topay it back....I know we are extremely lucky to get this second chance to make a fresh start and move forwards .......I just wish the money I have been given hadn't come to me until after the IVA had finished in 2012....it seems wrong that someone else's money is having to pay off my debts that they had nothing to do with and she would have been cross about !
But I know the proposal is there for a reason and we signed up to it - but I still don't like it !
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31101932

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Post by 31101932 » Mon Aug 16, 2010 7:26 am
I know that this seems harsh, but had you kept struggling to make the contractual payments instead of going into an IVA would you ahve used the inheritance to pay your debts?

Also, without the IVA, contractual interest would be far higher than statutory interest and any late/missed payments would have attracted penalty charges on top.

I think that you will just have to bite the bullet and move on.
 
 

Adam Davies

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Post by Adam Davies » Mon Aug 16, 2010 3:17 pm
Hi
Good advice from 31101932, I think we would all feel a little uncomfortable if we were in the same position but I guess there is nothing that you can do about it other than grit your teeth and move on
Regards
Andam Davies
 
 

Skippy

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Post by Skippy » Mon Aug 16, 2010 3:33 pm
I suppose this goes to show (as many of us know to our cost) how important it is to make sure that you read your proposal carefully and make sure you are understand and are happy with what you are signing.
 
 

kallis3

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Post by kallis3 » Mon Aug 16, 2010 3:46 pm
Too true.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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