IVA charges

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mickhaynes2
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by mickhaynes2 » Thu Mar 23, 2017 11:14 am
That sounds a better way of doing it, thank you for your advice I will speak to my soliciter, thanks again
mickhaynes2
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by mickhaynes2 » Fri Mar 24, 2017 11:28 am
Michael Peoples wrote:
Your solicitor could write to the IP and ask for a settlement figure for the IVA and give an undertaking to pay the funds on receipt. This would mean all your personal details would not be revealed and should be acceptable to any IP. The IP would also then have to detail their fees and costs which you could query if you wished.


Hi Michael, can the soliciter dealing with the sale of my mothers house, send a letter to my IP or does it have to be someone who deals with Iva's I don't really want another bill for soliciters,
mickhaynes2
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by mickhaynes2 » Fri Mar 24, 2017 11:46 am
Also with all the costs they are charging
I may as well stop paying the Iva let them keep what I have paid and go straight to creditors and pay what I owe them
I feel I was not advised correctly
Out of the £400 I pay them the keep literally
£200 ridiculous
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Foggy
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by Foggy » Fri Mar 24, 2017 12:22 pm
The probate solicitor can deal with your IP. No need for another.

If you stop the IVA and go straight to creditors they will add on contractual interest --- which will be more that the statutory interest and also possible late payment charges as you will no longer have the protection of the arrangement.
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Michael Peoples
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by Michael Peoples » Fri Mar 24, 2017 12:34 pm
There is also the possibility that if you stop the IVA payments you could be made bankrupt by the IP and the costs involved here would be horrendous. I would be not advise that option at all. You could ask the creditors to remove statutory interest in a variation which would at least save something and your IP could negotiate on the fee since the creditors are being paid in full.
mickhaynes2
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by mickhaynes2 » Thu Mar 30, 2017 5:34 am
Hi, what do think the chances are, of them removing the statutory interest, I am paying back in full after 3 years,
and it adds up to £12000 seem a lot, I have mentioned this to my IP, and he says, that he will ask them, but it would be, all removed or nothing,
not variable, just doesn't seem fair, when I'm paying back early, the £51,000 I owe will turn into £75,000 nearly £25,000 more
mickhaynes2
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by mickhaynes2 » Thu Mar 30, 2017 6:01 am
Forgot to add, in the 3 years I have been paying £400 a month, after charges and fees, I actually owe more now
than what I originally did.
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Foggy
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by Foggy » Thu Mar 30, 2017 6:41 am
Hi Mick. I have seen the S.I element removed before in a variation, so there is every chance. In mine it was taken out right at the start. Do let us know how you get on.

As for owing more than you started with ---- I don't know what your contractual interest rates wer -- but I am guessing, with contractual interest running, it would have been a lot more without the IVA !
mickhaynes2
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by mickhaynes2 » Thu Apr 27, 2017 1:53 pm
Hi, just found out HMRC wont quash the interest, leaving me with £12000 to pay out of my inheritance, seems very unfair,
only 2 years to go, should have asked my mother to change her will, if I was psychic and new she was going to Die,
warning to people who might inherit any money during an Iva, get the person to change will, my mother would be turning in her Grave,
thanks HMRC, I expected to pay some, but not the full amount, NOT HAPPY
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Foggy
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by Foggy » Thu Apr 27, 2017 2:50 pm
mickhaynes2 wrote:
Hi, just found out HMRC wont quash the interest, leaving me with £12000 to pay out of my inheritance, seems very unfair,
only 2 years to go, should have asked my mother to change her will, if I was psychic and new she was going to Die,
warning to people who might inherit any money during an Iva, get the person to change will, my mother would be turning in her Grave,
thanks HMRC, I expected to pay some, but not the full amount, NOT HAPPY


In this day and age an insolvency stipulation might be a good clause to insert in any will ! Even if you have to pay a chunk more than expected, the inheritance will help give you a fresh start and you can recoup a little by not having to make those monthly payments for the next couple of years, as well as being free from having someone looking over your financial shoulders all the time.
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Michael Peoples
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by Michael Peoples » Fri Apr 28, 2017 8:30 am
We will advise our clients of the windfall clause and many do get wills changed. However it is a delicate situation to broach when you are discussing your own insolvency and the other person's death. Some clients have told their parents for example that they do not want to be in the will and to change their names to their children's which works quite well.
mickhaynes2
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by mickhaynes2 » Tue May 16, 2017 7:22 am
Morning, coming to the end now, due to inheritance, reading through my original contract,
there's a section that says,

Watch Portfolio management-standard modifications
Nominee Fee
The Nominee Fee will not exceed £2000

Early Settlement
In the Event the arrangement should come to an early conclusion no additional fee may be charged in respect to the early settlement

what do these mean, when I asked my IP he just said to ignore them, but didn't say why, and just changed the subject,
I'm sure its fine, but I am paying enough as it is with IP fees and interest, just wondered what these meant
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Michael Peoples
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by Michael Peoples » Tue May 16, 2017 7:58 am
The nominee fee is the fee charged for the work done up to and including the meeting of creditors. £2,000 for a self employed case is about average and will have been paid from the first IVA contributions. The other modification says that the IP cannot charge an additional fee for early settlement which is a bit vague. It could mean that the IP cannot charge an extra fee on top of everything else when creditors are repaid in full early but regardless all these conditions should have been explained to you at the time of the meeting. You are entitled to know what each condition means as you would have had to have understood them when you agreed to the at the start.
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Foggy
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by Foggy » Tue May 16, 2017 8:04 am
I agree with Michael on the Nominees fee. My guess for the ,yes, rather vague early settlement would be that they are not allowed to add in the £500 or so that many IP's charge extra for a variation meeting.
mickhaynes2
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by mickhaynes2 » Tue May 16, 2017 12:25 pm
They had a meeting, regarding trying to get interest removed, but HMRC refused. was told meeting would cost me,
£300/£400 I've paid 38 x £400 and have to pay them £10, 000 in fees which leaves about £5,200 to creditors seems ridiculous
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