My partner and I have been in joint IVA’s for the past four years. I am now fortunately expecting a sizeable windfall which should be adequate to cover our original debts of £29,000.
I obviously notified my IP of the situationand requested how much I now need to pay from my expected windfall.
However, having received the following information, I am totally confused as to how many times should I pay interest, how do the totals add up or are they just ripping me off?
Number of Days 1478
Creditors 29,281.97
Statutory interest 9,485.75
Total Due to creditors 38,787.72
As far as I am aware, you will never be expected to pay more than 100p in the pound, plus fees and possibly statutory interest.
Hopefully one of the experts can help with this one?
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
Well it doesn't make sense to me either! First of all the figures don't add up, and secondly this makes no allowance for dividends paid to creditors to date.
Do check that your IVA proposal provides for statutory interest to be paid as well - some don't and if not then this will not need to be paid. Your IP seems to be getting well remunerated at 25% of realisations - so why not try to negotiate a reduction given that the additional work they have to carry out is minimal. Ask them to confirm their level of actual time costs to compare against the realisation method.
Thank you all particularly Melanie. Apart from the rather dubious arithmetic I also have other doubts regarding terms etc. as my original IVA was with Debt Matters which was taken over by PayPlan in the second year. Who would be the best people to talk the whole scenario through with, Citizen Advice Bureax or a Solicitor conversant with IVAs?
I wouldnt go to CAB. They have an understanding of how an IVA works but thats all,they probably wont want to be involved in a dispute. A solicitor may costs you a small fortune so I would wait for Mel's reply of who to turn to,she may know someone within payplan who could check over the figures.
Paul
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
The things I can't really fathom are what all the other 'additional' costs are. Within my IVA proposal the Nominee fee is £3,210, which is correct but the Supervisor's Remuneration ‘should be on a flat fee basis of £20 per month plus VAT over the duration of the arrangement’ so what is the £4,040.26 for, or is it against the Expenses and Disbursements clause which 'anticipated that the Supervisor's reasonable expenses and disbursements will total in the region of £150-£250? (a bit of a dramatic disparity!)
Can't quite fathom where the 49,992.05 inc 25% sup fee +VAT (whatever that is) as the Early Settlement condition states 'In the vent that I successfully bring my voluntary arrangement to an early conclusion the Supervisor will be entitled to charge a fee of £775 plus VAT to cover the costs of closure. The Supervisor has however consented to only draw this fee should there be 24 months or more of the original term of my voluntary arrangement remaining.'
Now don't get me wrong, I'm fully committed to fulfil my obligations to my creditors in full now that the prospect seems to be becoming available, I just can’t see where all the additional costs have come from.
Last edited by datacroft on Tue Jul 13, 2010 1:59 pm, edited 1 time in total.
I now understand where the 25% supervisory fee comes from.
When the Debtmatters cases were handed over to Payplan and Grant Thornton, it was necessary for them to block modify the whole portfolio to ensure that these cases could continue to deliver good returns to creditors, in a manner that ensured that clients and IP could work together more sensibly in the future. This included the new IPs being correctly remunerated for the work that still remained to be carried out with the portfolio generally, and of course was largely at the expense of the creditors themselves.
In your case, your changed circumstances are exceptional, and I would definately try and see if you can negotiate a lower fee for the work remaining. Payplan are a "not for profit" company, and I would hope that they can offer you some assistance in this area to preserve some of your money. Given that you have some money available to you, a good lawyer could be worth engaging in order for you to be taken seriously - although I would hope that your IP would listen to your reprsentations and agree a satisfactory compromise which ensures that his actual costs are paid.
Thank you again Melanie at least you've identified the additional charges declared.
I am somewhat surprised that changes can me made to my original proposal without my knowledge or input but obviously at my cost. Just goes to show that actually being honest I get penalised and expected to pay for every failed IVA in Payplans portfolio.
I'm still very confused as to how the 25% sup fee is applied and paid for.
Am I correct in my assumption that if the original IVA went it’s full course that PayPlan had agreed with the creditors that the 25% sup fee is what their ‘cut’ would be as recompense for their labours. In effect a contract exclusively between PayPlan and the creditors?
My change in circumstance now means that my creditors will be receiving 100% of my debt s plus 8% statutory interest less funds already paid?
PayPlan would retain all of the disbursements, Nominee and Supervisor fees paid to date plus a reasonable fee to close the IVA?
Does the above effectively negate the need for the 25% sup fee as this is what is causing me many sleepless nights as I have the impression that PayPlan are seeking this from me in addition of the above?
