Is this right??

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gracey84

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Post by gracey84 » Thu Mar 20, 2008 10:47 am
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I received a copy of my annual review yesterday. In total I owe £19k, over the past 2 years i've paid just over £10k into my IVA. If i'm reading this right it says that £9k of that has been paid to the company running the IVA with only a little more than £1k going into my IVA fund. Is that right? Because surely I would have been better off not entering an IVA and paying what i'm paying now and clearing everything a year earlier than I will do on the IVA. Is this normal for the set-up and running costs to amount to £4.5k every year. with only £500 pounds going into my IVA??
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Adam Davies

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Post by Adam Davies » Thu Mar 20, 2008 11:41 am
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Hi
Couple of points here

Was a debt management plan explained to you and considered by you ? You are ight in that you could have returned your creditors 100% of your debt within five years depending on the interest and fees imposed by your creditors.However you do not have any legal protection from your creditors under a DMP unlike an IVA.

It is quite normal for the nominee fees and the yearly supervising fees to be taken in the first year or two,however these do seem high.
Your creditors agreed to the fees and an IVA rather than a DMP,I'm sure that nowadays an IVA under the same circumstances would not be agreed and a DMP suggested
Regards
Andam Davies
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size5

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Post by size5 » Thu Mar 20, 2008 11:46 am
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Andy is right, and you have to bear in mind that 2 years ago IP fees were generally a lot higher than they are now as well.
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gracey84

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Post by gracey84 » Thu Mar 20, 2008 1:21 pm
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So is there anything I can do now or is it a case of continuing with the plan for the next 3 years then be done with it.
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gracey84

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Post by gracey84 » Thu Mar 20, 2008 1:41 pm
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Andy, going by what you said does that mean that no more payments should be going to the IP as these are all paid??
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Adam Davies

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Post by Adam Davies » Thu Mar 20, 2008 2:02 pm
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Hi
They will take their annual suprvisor fee.
Stick with it,you will be no better off under a DMP or bankruptcy as you will be starting again with almost your full original debt.
Regards
Andam Davies
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gracey84

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Post by gracey84 » Thu Mar 20, 2008 2:47 pm
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DMP??

Is there a possibility that the IVA will finish early or is it always going to be 60 months?
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Adam Davies

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Post by Adam Davies » Thu Mar 20, 2008 3:11 pm
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Hi
DMP debt management plan
If you pay extra into your IVA[overtime,bonus]and reach a point where you have paid the original debt and IP fees then your IVA will conclude earlier
Regards
Andam Davies
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MelanieGiles

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Post by MelanieGiles » Thu Mar 20, 2008 11:28 pm
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The numbers on this do not look right. From your original IVA proposals how much were the stated nominee's and supervisor's fees?
Regards, Melanie Giles, Insolvency Practitioner
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