My IVA (which I am due to complete in September, 2 years ahead of schedule) has me paying back 100% of my debt + statutory interest PLUS Nominee and Supervisor's fees PLUS insurance bond.
The latter three items have added approx £13,000 to my debt!.
All the information I have read seem to indicate that fees are paid for by the Creditor(s) out of the fund created by my payments.
Do I have the right to challenge this even though I signed the IVA agreement some rtime ago (when to be honest I was in such a mental turmoil that I never thought to question who paid the fees!).
I guess my concern is by querying this I am a) adding cost by increasing Supervisor's fees as he will charge me for his time in responding and b) my objecting to pay these fees will delay the issuing of my Certificate of Completion even though I have already paid 100% of capital and (now nearly) all the interest.
Last edited by David.dh on Mon Jun 25, 2012 8:07 pm, edited 1 time in total.
Hi David, Welcome
What a great position to be in finishing early. You can of course challenge your IP at anytime however, it is you who have paid the fees as part of your monthly payments and your creditors agreed that they were set at the correct level when they approved your IVA. Most fees nowadays are a % of realisations so suspect you have nothing to gain, but that is only my personal opinion and others may take a different view.
Personally I congratulate you in meeting a 100% payback + fees + statutory interest as this is the target of all IVAs but I understand your commment about being in turmoil and maybe you overlooked things to get creditors off your back.
I would move on now with your head held high as you have achieved something not many of us have been able to do.
Last edited by herbekj on Mon Jun 25, 2012 8:12 pm, edited 1 time in total.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
I would have thought that, with the obvious ability to make that sort of repayment, you were ill advised to enter an IVA in the first place (based on the very limited information I have).
Might I ask who the IVA is with ?
As a three year old IVA, there is every chance that it is protocol based and the fees are likely to be a percentage of realisations, as opposed to time based, (check the paperwork), so it will "cost" nothing to query.
Incidentally -- again without knowing the details, but based upon my own debts -- you will still have saved a sizeable chunk in interest ( which the creditors charge at somewhat more than 8%).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I think the IVA was well advised at the time. I was made redundant shortly after it started and that realised a significant capital amount that obviously went to my IVA fund. I was then able to secure a position as a contracting IT manager that improved my monthly income and I devoted most of that to clearing my debt.
One reply has said that IVA fees are paid as part of my monthly payments - that to me implies that if I pay back 10,000 (lol my IVA was WAY larger than that!) and my fees are say 1,000 then the creditors receive 900. But in my case I am paying the 10k plus the 1k.
My IVA contract commits me to 60 payments of x - at current projections I will have have paid well over the equivalent of 60 payments!
Maybe I just am mis-reading the situation?
Yes I am lucky that I have been able to extricate myself from my applaing situation early and yes I can hold my head high and know I did the best for my creditors (although they will have lost out on some interest...!), it just sucks that to get OUT of debt has cost me a somewhat unexpected £13k!
Last edited by David.dh on Mon Jun 25, 2012 8:44 pm, edited 1 time in total.
We paid 100% and were always going to from the outset - that means we also paid all the fees and the interest which was around 11k - some said that maybe we shouldn't have entered an IVA being in a position to pay back everything within the 5 years, but it was a decision we made.
When you think about how much would have been added on with interest and charges - there is no way we would have now been debt free without it!
The benefit of hindsight is a wonderful thing David, and it could well have ended differently for you. As Foggy says, calculate the interest you have saved and it may give you a different perspective on the totals.
If you owed £10,000 and your fees were £1,000 and in the 60 months of your IVA you could afford to pay £11,000 then you have paid back your creditors the original amount and your IP fee of £1000. Ignoring any statutory interest here.
If you could only afford to pay back £8000 then creditors would receive £7,000 ie a 70% payback.
Rather simpllified things a bit there as assuming IP fees fixed at £1,000 with no statutory interest but clearer to illustrate but you have to factor in the interest saved over the period and/or charges the creditors can charge that they can't in an IVA. They could be significant.
Last edited by herbekj on Mon Jun 25, 2012 9:05 pm, edited 1 time in total.
Last Payment - November 2011 - Completion Certificate received 2 weeks after last payment, Removed from Insolvency Register within 4 weeks after last payment.
hi again David. Yes, on the info now supplied it would seem that the IVA was well advised and that circumstances worked in your (and your creditors) great favour.
How you view things is, of course your perogative. However, had it beem me in your shoes I would simply be rejoicing in being done and dusted ( or as near as) and soon to be totally debt free. Going forward your IVA payments will be staying in your pocket and the world, as they say, is your oyster.
Onward and upward
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Hi! If you feel that an iva was the right thing for you then that's great that you have completed early and can now enjoy life being debt free! I have to wonder though if iva's are being offered when there are simpler solutions! It is always the client who pays the fees no matter how you look at it! DMPs have alot less stigma with them and you are not placed on an insolvency register and will prob get a mortgage again! Iva's should not be considered as an easy option ( no accusations meant by this) you are the 2nd poster who has said that they wil have paid 100% + fees + interest!! Therefore if you did not hav the fees to pay you may have paid this off sooner! I know that many companies work well with creditors in being able to freeze all interest in a DMP! It's slightly worrying that iva's are being sold to some people when there looks to be a better solution!
