regards, Jamie Bradley
Nominees fees are typically around £1500 - £2000 for setting up an IVA -- and this is the same for a £6k debt as for a £100k debt. This is sometimes limited by creditors to the first 6 months or 12 months payments. After this the supervisors fees are commonly around 15 - 20% of the payments. Also, of that PPI payment, typically, 30 - 40 % of a PPI refund goes to the claims company.
This all sounds pretty horrific, but, as I say, has been agreed by your creditors.
Don't cancel the payments Jamie, failing the IVA or being put in breach by your IP isn't going to resolve anything. Your creditors have received next to nothing in dividends by your statement so you will still owe them a good chunk of money plus interest backdated and going forward. Make a formal complaint to your IP, send it snail mail and recorded so you know he has it. Your creditors agreed to the low dividend at the proposal stage of the IVA being set up so they were fully aware of what they signed up for. You are angry because you feel guilty that they aren't being paid, but it really is out of your hands and not something that you really need to worry about. Phone your IVA company and make that missed payment, don't fail the IVA at this late stage.
How much was originally estimated as a dividend in your original proposals?
Creditors often see little or nothing at all in the early years - sometimes a dividend is not paid until the end of the term.
As long as you stick to the terms of your IVA and it successfully completes it won't affect you how much/little they get - they accepted the IVA and accepted the costs too.
When you get your annual report from your IP this will show what has happened to your assets which have probably used up in IP costs. These are often front loaded.
MerlinL14 wrote:Why are IP's suggesting IVA's to people with low debt? I know it seems like the end of the world to the debtor and any way out is a lifeline, but are IP's doing this just for the fee's?
We couldn't comment without knowing the debtor's circumstances. Ultimately it's up to the debtor to decide what option to take. I would never advise an IVA as being the best option if it wasn't. In any event IVAs take up a lot of time and effort to put in place and administer so if there isn't much in the way assets to cover costs then I can't see how this would be attractive anyway...
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