My ex-husband and I were not advised that one of us could have gone bankrupt, i.e. me, and he could have entered into an IVA. We were told that we both had to enter into it for one to work, and that our monthly payments to them would be between £288.00 and £309.00 for the first 6 months. This meant that we would be paying the IVA Firm around £1,800.00 in fees for the first six months, and once they had been paid their fees, then the creditors would be getting their dividend of the pot. However, upon speaking to our creditors 18 months after entering into the IVA (prior to it failing), not a single one of them got a penny. So, where did the monies from the Dec 2011-Feb 2013 period end up?
We felt that we had been conned and badly mislead by the IVA Company.
I did complain to them in writing in 2013/2014, but all they said that as it failed due to non-payment in 2013 (when we experienced a major difficulty with our incomes which we told them about), there was not much they would do about it. They failed to answer my questions about money being sent to creditors once the fees had been paid.
It is usual for the Nominees fees to be paid first -- sometimes limited to the first 6 or 12 months payment, sometimes the full amount. Thereafter they take an agreed amount (typically 15%) plus expenses for Supervisors fees, as agreed and laid out in the proposal and Chairman's Report of the initial meeting.
There might not be much that they could do about the failure, but that does not absolved them of the responsibility to be able to account for the monies you paid in. You are entitled to see a statement of account and challenge it, if needs be.
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