IP's fees

[pennyfortheguy]

Can someone comment on what is a typical reasonable range for hourly rate for IP's please? Thanks

[aguise]

Hi Penny and hello from me.

Ip fees are built in to the proposal, So what is on the proposal so long as there ar no variations then that is the amount you pay. It is not paid separately it is included in the monthly iva payment . In effect your creditors agree to less due to the fees for the Ip.
Wait for others to answer as I am not a technical expert, hope that was what you wanted.

Ang

[MelanieGiles]

These days IPs rarely charge fees based upon hourly rates for IVA work - it is more usual for those fees to be remunerated on the basis of a percentage of realisations - and this is currently 15%.

[pennyfortheguy]

Thanks for the replies - I probably have not made myself clear. I will try again.......
originally I was contemplating a joint IVA and subsequently this was reviewed to a single IVA only after everything was considered. The IP now wants paying for this & he has indicated a hefty hourly rate. By this time it was too late to find someone else & I wished I had found the forum earlier!

[Viki.W]

Hey pennyfortheguy, I'm just going to bump this back up for you for the experts. Does your IP want a seperate fee paying to them? X

[MelanieGiles]

I'm sorry but I don't understand the post. What is your IP actually seeking to charge you for and how much is he suggesting?

[pennyfortheguy]

Yes Viki.W, the IP wants an extra fee for the time he spent on looking at a joint IVA with my wife (original plan). Subsequently, it was considered that a single IVA by myself was best route to go & it gave better dividend to creditors. I have not been invoiced yet so do not know exact sum involved but we have a meeting with him later this week at which I think he will produce his bill. It could be quite a bit as his hourly rate is quoted at just short of £200.

[aguise]

Hi again Penny. Were yo originally told when you were setting up the iva that you would be charged by the hour for any work done. As I said in my first post it is normal for costs to be part of the proposal if it was decided with the Ip's help that an interlocking iva was not necessary then I dont think most would charge for this. Only my opinion though, hopefully Melanie may be able to advise.

Ang x

[MelanieGiles]

Did you enter an agreement with the IP which confirmed that you would pay for his fees in advance, regardless of whether the IVA was accepted or not? Most IPs who specialise in personal insolvency would not do this, so you might want to check any contractual paperwork you signed when the IP was first instrcuted.

[pennyfortheguy]

Thank you for all comments. I will look through the paperwork but cannot recall signing up to anything. However......
Can I please go back to my original question and that is what is a reasonable hourly rate for IP's please? (or a typical range?). Thanks

[MelanieGiles]

It depends on the firm. Some larger firms charge in excess of £500, some smaller firms charge under £200. As I said earlier, it is rare for fees to be charged on the basis of hourly rates at all these days.

[pennyfortheguy]

Thanks melanie. I will see what happens when I meet my IP again later in the week. Cheers!