I refer to your statement: “Your creditors stipulated a realisation based rate and as the Supervisor’s fees are calculated as a percentage of receipts, therefore these will increase proportionately where further receipts into an IVA are greater than first anticipated, for example due to successful PPI mis-selling claims being pursue or windfalls being received."
As I see this, the percentage of receipts increased proportionately where it was realised I would be able to achieve 100p in the pound. This was calculated on the full original debt of £13224 (or thereabouts as I don't have the exact figure to hand.) The original fees in the proposal were calculated on an estimated receipt of £8681 as you stated. However, should the fees not also be proportionately reduced to fall in line with the new total realisation since around £5000 has been withdrawn from the creditors’ claims through closures following complaints and financial ombudsman instruction? I can see how the fees went up with the increased estimate, however I feel it is only right and fair that they go down to reflect the percentage being taken from the new final realisation, which is roughly the original estimated figure.
I do agree that without the Iva I would be paying more to the creditors than the dividends you are releasing to them, however as it stands I am paying almost twice as much between creditors and yourselves as the debt should be now the creditors’ claims have been dramatically reduced.“
Thanks in advance. I hope this doesn’t confuse you, but it certainly has the potential!
Foggy wrote:Fees are not connected in any way to the amount of debt. They are agreed as laid out in your Chairman's Report, either on a time charged basis or as a percentage of the amount of payments you make, in addition to a fixed fee for work done prior to the IVA starting. So recalculating the debt will not affect the fees (indeed, if on a time charge basis, it could increase them due to extra work involved).
Hi foggy, thanks for that.
So if they're worked out on a percentage of payments I make, they would have been worked out on the payments reaching £13224 originally, which has now changed so the payments I make will amount to about £8500. Will that not affect them?
That would be my opinion anyway.
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