Hello,
Do IP's have a vested interested to keep payments high and not revalue or reduce payments? My point is if I was to come into some money due to pain or suffering would the IP be better off to make me hand it over??
Do they receive a percentage of any additional payments made?
Also why would they not use there discretion to reduce payments by the 15% in such hard economic climates?
Regards
No, IP's don't have a vested interest at all. They are there to help you with your IVA and also to make sure that the creditors get the payment they are happy to receive.
If you get extra income then that will more than likely go towards your IVA and any windfalls will be classed as the same.
The IP does not receive anything extra other than the fees which are agreed by the creditors the meeting. They will only reduce your payments if you really cannot afford to keep up with the payments and then your income and expenditure will be gone into.
If you can still afford to pay your IVA and your normal bills then the reduction will not come into play.
We are all trying to pay back as much as we can to our creditors.
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
Your IP is appointed independently by your creditors to manage your IVA. It is our duty to treat you fairly and make sure that the IVA serves the purposes for which it was accepted. If you are stuggling to meet your payments, your IP needs to listen to your difficulties and assist where possible, Similarly if your situation improves, your IP is under duty to ensure that your payments are increased or assets handed over for the benefit of the creditors who may have agreed to effect a substantial write off of the monies owed to them.
Unfortunately IP's such as those on this forum don't span the whole insolvency industry. I have only been aware of insolvency solutions, in any depth, for about the last 15 months. However, during that time I have formed the opinion that there appear to be four main types of Insolvency Company, based upon many posts from IVA'ers on various forums:
1) The out and out scam artists (ambulance chasers and the like).
2) Those looking out for their own backs (Grab the customer with false hopes and promises then leave them high and dry to work through the term unaided).
3) Those looking out for the creditors backs (Get the maximum payment from the client, to the point of putting them almost into purgatory, and refuse to reduce under any circumstances).
And, finally,
4) Those akin to the Companys represented on this forum. Who DO fit the profile given by Mel, above.
Unfortunately, it seems, the less scrupulous get themselves a higher profile and, in turn, give the industry as a whole a bad reputation. I might add that some of the larger, well known, company's have a place in number 3 above too.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Any fees are clearly set out in a iva proposal,mine were very transparent,and in my case my IP company earned every penny,I was supported into a arrangement that gave me hope for the future,within 5 years i was totally debt free,and my creditors effectively wrote off over £50,000 of my debt,i cant thank my IP company payplan enough.I have the upmost respect for IP companies they do a great job.although a iva does,nt suit everybody, they advise on each specific case.
Last edited by MRBLUESKY on Thu Sep 22, 2011 5:00 pm, edited 1 time in total.
I, too, have no arguements with my company (so far). When it works well it is a Godsend, but, for some that's not the case. It's a pity that more people don't discover forums such as this before signing on the dotted line.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I have to say I can only speak through personal experience but I am more than happy with my IP, naturally of course they have a business to run, however, they are there to ensure the smooth running of the IVA for maximum benefit of the creditors but also ensuring your IVA is affordable to you during it's lifetime, it would be no good any IP setting your payments so how just to maximise their return if that meant your IVA failed.
I'm pleased I'm with my company - McCambridge Duffy. Luckily I found the forum before I chose my IP. I have no problem with the fees. They have to supervise the agreement and the amount they charge is negligible. I know they have to do a review each year and it's down to me to show I need the amount I have put down on my I&E. I also appreciate that for a F&F offer to be put forward they have to do more work.
All I really care about at the end of the day is I can afford the payment agreed, doesn't matter what goes to the IP or what goes to the creditors and in 5 years if we complete the remainder of our debts will be written off.
Correct me if i am wrong, but when we say that creditors like credit card companys are writing off our debts i understood they dont actually lose that amount because the losses are off set against their tax?
From what ive read they would not lose half of what people owe.
If i am wrong then i stand to be corrected.
As for IP's fees i dont have a problem with then at all.They are clearley their to see.
Yes, Baldy, I don't know about the finer detail, but the creditors sell on the debts for pence and then write it off as toxic debt. This gets them a small, immediate return, they offset it against profits for tax purposes and their books look better without the bad debt showing.
Of course, if you have held the credit card for a number of years they have done handsomely from the interest already --- getting the capital back is just a bonus !!!
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
To be honest with you - I don't care what they do with the debt, all I am grateful for is they have agreed an arrangement that helps me see a future for us.
To a degree I agree with you kazzafunk ---- but I can't help sticking my nose where it shouldn't go and finding out the background to stuff .... probably in my genes.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
