I found an IP and have got an appointment to see them on thursday.
Here is the situation, I am self employed and business hasn't been going very well over the past 18 months combine that with some bad business decisions I have debts of about £38000 on cc's and a loan, an IVA seems to be the route to go down as it's come to that stage where I can't get another cc to transfer balances to and the payments are crippling me.
I spoke to the IP and they said that £16k would be the amount I would need as a lump sum to do a F&F offer.
A family member has offered to help and might be able to come up with the £16k. The IP said that it would be best if we could get the money together first so they could hold on to it when they make the F&F offer out to the creditors as it would hold more weight if they had the money already. Is this right?
They also said that their fee would come out of the lump sum and that if the IVA wasn't successful they would return the money back minus £1000 for their costs.
Also, as I am self employed they said that we can't do a quick IVA but that it would last 16 months because HMRC would be a creditor due to tax that is due. My tax year is june to june and my accountant has done the books for 09-10 and 10-11 and said that we should be able to do a quick IVA as I won't owe them any more money until the 11-12 set of account is done, and then the payment will then be due in the Jan following.
What should the fees be from the IP on a case like this?
I want this over and done with as quickly as possible so I can get my life back on track.
Which company are you going to see on Thursday? Whilst it is normal to have the full and final money already there before the meeting, I've not known of anyone keep money back for fees from that. You need to make sure that they know the money is only available for a full and final, nothing else.
There is no reason at all why you can't do a normal IVA over however long.
Personally speaking I would phone or two more firms and make sure you are happy with who you have picked.
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'm sure that the amount (£16k) was based on what was affordable rather than just what the IP felt was required. They have a responsibility to make sure that the amount is affordable, but no real need to hold the funds if it makes you uncomfortable.
The £1,000 they have mentioned is likely to be the Nominee's fee - it's based on the complexity of your case and covers the work done up to and including the creditors' meeting.
The remaining work is covered by the Supervisor's fee, and these days unless your case is very unusual that should be no more than £2,400 (15% of contributions). If your IVA is not accepted then the Supervisor's fee won't be payable.
You must read everything they send you, as all of the fees will be clearly stated in your proposal before you agree to anything.
Best of luck!
Which IP are you using if you don't mind me asking? Some of our posters may have had experiences.
drake,
i understand a lot of work goes into preparing a proposal but there are many companys, who do not charge anything if the iva is not accepted.
personally think i would check out a few more companys
kat
IVA accepted 6th May 2011, Full and Final accepted 17th April 2012.
For my two pennorth, suggesting a figure to put forward in cases like this is probably not the way I would approach it, although there is no substitute for experience and this is in no way meant to be a criticism, just a different viewpoint. If there are third party funds available for this sort of offer, it may be an idea to establish beforehand what they are rather than the other way around. After all, any 3rd party funds offer will need backing up with evidence before creditors meeting anyway.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Forgive me if I am being a bit thick here, but they can't do a quick IVA, yet they can advise on a £16K full and final..... sounds a bit dodgy to me. They don't need to do any work to make themselves £1k just put forward a deal that won't be accepted and return you £15k.
Have you checked out some other companies? I understand you want to fast track to a good financial position, but are you sure you have understood everything and not being blinded by their promises of a quick fix.
Don't mean to be a pesimist on this one, but just don't want you paying for a service that you won't be getting. I would certainly check out a few more companies... the one's recommended on this site are second to none.
Sorry if I have totally mis-understood your post, something just seems amiss.
Drake P
Welcome to the forum, although a F & F would get your life back on track you do realise that the IVA will stay on your record for 6 years and your credit rating would be shot for that time, so although you wouldn't have the debts you would not be eligable for any forms of credit either and even a mobile phone contract would be difficult to find.
If life is what you make it, I must have been in a strange mood when I made mine
My affordability each month is nearly non-existent. What comes in goes out.
The amount of £16k was based on how much they thought the creditors would accept on a F&F.
For my family member they said that £11k would be a lot easier for them to get hold of. I did mention this figure of £11k to the IP and they said that in their experience the creditors would not go for it and if they did not go for it that there are not many other options and that I would be in the same boat I am in currently.
The one thing I am really worried about is losing my house. We've just had it valued at £160-£165k and the outstanding mortgage is £133k.
I realise that this will be on my record for 6 years but to get it done and dusted knowing I would not have to do yet another monthly commitment would be great.
I had also thought about my mobile phone contract, what will happen to my current one?
Some of the experts that post on this site are "Size 5" from Cleardebt, "Melanie Giles" (sorry Melanie don't know the name of your company), "Lizzy" from Payplan and "Declan" from DFD (Debt Free Direct). Ooops forgot the site sponsor "Andy Davie" from Vincent Bond. All are very reputable. Flick through some of the older posts and view their comments to others this may help you to decide who to seek advice from.
Hi -- on the house front, there is not enough equity for the creditors to be interested in a forced sale.
Say the market value was £160,000 (if valued by and estate agent, that's the asking price, it would probably realise a few thousand less in the current market). Forced sale value is around 85% (sometimes less). That gives the property a forced sale value of £136,000. Therefore current equity £3000, which is deminimis.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
