IVA proposal

[dorset70]

I received my telephone call from DFD this morning, 45 minutes later was finished and off to work feeling better and relieved that process is starting.I now have to await my proposal from them which takes about two weeks to send out to me and when that is received back its apparently about three weeks later that creditor meeting is held.

I felt relieved but find as day progresses that am becoming very anxious and worried and questions are arising.


I asked them what their fees were and they said that I would not pay any fees to them as they only get paid if my iva is approved, its only now that I realise I wasn’t given a figure, is this normal or should I ask them for a figure if I don’t have to pay them?

They have worked out a monthly repayment of £207.00 per month of my monthly income of £1245 on £26,099 total debt which they have said equate to about 29% repayment which I don’t quite understand he said that the minimum accepted is normally 25% so quite concerned that I am only offering 29% repayment, does this sound reasonable?

I said I was concerned about my biggest creditor Natwest which is £14,300 of which £2850 is RBS credit card which I said I understood were linked to Natwest. I said I was concerned that if they didn’t vote yes that it would not be approved, he said not to be concerned as as far as they are concerned RBS are a separate creditor to Natwest. Am I right to be concerned about this as I work out that this equates to 54% of my total debt?

They have said to make token payments to creditors from now on until creditors meeting of amounts totalling to roposed payment of £207 spread out evenly amongst my creditors and get in touch with them to let them know I have an IVA proposed.

How does all this sound to everyone, advice as always greatly appreciated?

[Adam Davies]

Hi
Everything sounds fine.
Pay each creditor 80p for every £100 owed,this way your £207 will be spread equally and fairly to your creditors.
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[MelanieGiles]

The IP should be completely transparent about their fees - and should have given you a figure. It is common to use the explanation that these are funded by creditors indirectly, but you should still have been told the amounts. This is usually detailed in engagement letters which are issued to you right at the beginning of your involvement with the IP.

The dividend of 29p you have been quoted, represents the amount which will eventually be distributed to your creditors, after costs have been taken into consideration.

NatWest are generally a supportive creditor, and Andy's advice re token payments is absolutely correct - I am suprised that your IP has left this up to you to work out however.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[dorset70]

Thanks Melanie

I think what I shall do is sit down and make a list of questions that I have and call them back so that I am clear and satisfied in my own mind.

It may well be a case of me having to take in so much information during phone call this morning (even though I made notes) that I may not have asked enough questions or taken in everything they told me, there is a lot to get your head round.

Thanks.