Can I just clarify the position on IP fees. Contrary to popular belief, we generally are paying dividends to creditors after the eighth month these days, and therefore your contributions are not swallowed up in fees. This was a change brought about by the IVA protocol, and a good one in my opinion.
Have to admit that it was over 12 months before any of my creditors saw anything.
Having said that, I know I have to pay for the service and am more than happy to do so. If my creditors weren't happy, they would have said so.
I think IP's do an excellent job helping us to pick up the pieces and start again.
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 said Helen. When I went into my IVA the fees didn't concern me at all, and I don't understand why people complain about them. You wouldn't expect a solicitor for example to work for nothing, so why should an IP?
Hi bd88,
sorry to hear about your iva failing.Feel i may be in the same boat as i have used my overtime money this year for a new central heating system.I did write to my Ip but got no reply.
Have been paying them £652 a month for three years now.
Anyway hope all goes well.
You will need to let your IP know at your annual review about using the money. As long as you can prove what you have spent the money on, then you may be ok.
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
There were a fair few mods on my proposal concerning levels of fees and when creditors wanted to see their first payments. In some cases it was as early as month 5.
7 year IVA completed in December 2016 - there is light at the end of that tunnel
kallis3 wrote:
IVA companies do not look to default anyone. They have their costs to recoup for setting up the IVA and for administering it. If the creditors think the charges are too high, they will insist that they are lowered.
The majority of us are quite happy to go along with this knowing that in five/six years time we will be debt free.
Hi Kallis/All.
I was not complaining about the fees that are charged by the IVA companies just the fact that the impression I got by reading the posts was that the IVA company was the first to get their money . So the approx 13k that GBD88 paid before the termination counts for nothing off his/her debt.I still think is wrong if this is the case but judging by later posts it's not done like this anyway and any monies would/can be shared. If this is the case is much fairer.
MelanieGiles wrote:
Can I just clarify the position on IP fees. Contrary to popular belief, we generally are paying dividends to creditors after the eighth month these days, and therefore your contributions are not swallowed up in fees. This was a change brought about by the IVA protocol, and a good one in my opinion.
Hi Melanie.
Your post is the fairest way in my opinion. Is it law then or just an "gentlemans agreement" ?. Would you be upset if you had paid £13,000 into an IVA and it went back to the beginning if you defaulted? I would feel totally robbed .
Hi Kallis3,
thanks for your reply.I have my review this month with my new ip(was with synergi)so will explain in a letter to them.Am very worried as this will be my first proper review.Never had a reply to any letter ive sent in past.
And yes cfc1 i would be a little miffed to say the least.
You will now be with Cleardebt blods, and they have an excellent reputation.
I am sure your review will be ok. If you have any problems, you can contact Size5 direct via his link on the experts page.
You should get much better service now.
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
I would be concerned if all of the money had gone in IP fees if that was in contravention of the agreement I had originally signed. Although it is easy to say that fees are not an issue for our clients, it is really important that all persons entering into an IVA are aware of the extent and frequency of the costs involved. Not all firms are following the IVA protocol yet, but creditors are generally bringing fees down to what they perceive are an acceptable level.
am in a similer situation involving the termination mainly due to the IP not keeping our account upto date.... and after fours yrs they are now pushing for termination in the next 29days any info on bnkruptcy would be much appreciated as our house is jst above negitive equity. were not bothered about moving and having to rent we just want our debts gone now.. need to know what docs i have to produce cost etc of bankruptcy they think they have won but im going to come out on top.. x
This is extremely worrying as im with Grant Thornton, and my parents just gave me a car..hmmmm. I told them and they were fine about it...this just doesnt make any sense to me...isnt the car classed as a present in a way? Surely as long as the person is keeping up their payments...
It think that the figures raise more questions than they answer. How were you able to afford an extra £190 to your family and an extra £70 to your IVA per month?
If you can answer these questions then talk to GT about the possibility of doing another variation with more information. Did they tell you why your creditors voted for the IVA to fail?
they think they have won but im going to come out on top.. x
