Monthly Contributions.

[Chris.z]

One for the experts really I think. on a debt of 29k, what dividend would 245.00 a month return over a 5 year period including fee's etc.

Thanks

Chris

[Adam Davies]

Hi Chris
It will depend on IP fees but an educated guess would be 37p [£245x60=£14700,less IP fees 4k] would leave £10700 a dividend of 36.9p.
Interestingly under the new TIX proposal the IP would get £2388[65 payments of £36.75p]during the five years,this used to be just the nominee fee !!!
You can see the reasons for the backlash.
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]

Not sure about your calculations on that one Andy - I make it £3,815 - but still insufficient to tempt a decent insolvency practitioner to act probably.

The TiX model allow for the first five (or four if voting for HSBC) payments to be taken as a nominee fee, plus 15% plus VAT of the total contributions made into the arrangement as a supervisory fee.



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

[Adam Davies]

Hi Melanie
Your right Melanie,I didn,t factor in VAT[mind you that,s not the IPs !!] and the first five months are at the full monthly payment,not 15%.Your right in that £3800 is still a long way short of the average 7-8k.
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

[Chris.z]

Hi thanks for that , have I missed something ?? Have fee's been reduced or something??

[Adam Davies]

Hi
Yes,creditors that are represented by TIX[the insolvency exchage]are hoping to cap IP fees at 15% of the monthly IVA payment and nominee fees 4/5 times the monthly payment.This may make low disposible income IVAs commercially unviable for some IPS.
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

[Chris.z]

Hi Andy , think I understand that , does that mean as a consequence IVA's will be hard to obtain for some people??


Chris

[MelanieGiles]

Yes - those people who only have the ability to make lower payments to creditors - say in the £200 to £350 category may find it difficult to find an IP willing to represent them, if this price fixing protocol is eventually accepted.

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

[Adam Davies]

Hi
Have a look at the IVA.co.uk press release[homepage,right hand side]
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

[Chris.z]

Has it not been accepted yet then?

The reason I ask is that I have recently gone to a variation meeting, which was declined. All in all I am a bit cofused I was proposing 220.00 a month on a 29k debt over 7 years. This actually only returned 23p dividend, due to my Co. charging over 10k in fee's. I think, though don't know that this is the reason, my variation failed, as they were actually getting more money than the creditors! I then offered a further increase to 245.00 ( this meant cancelling my Gym membership)and this actually made it 26p dividend. Thats why I was suprised when Andy said yesterday that 245.00 made a dividend of 36p over 5 years where I was suggesting 7!!

At my variation only 1 creditor voted which didn't help either and someone that has a debt of 3k! And this debt is from 1997... They actually rang me at work on Friday claiming they had some mail to forward to me and could I give them my new address as the last one they had was from 1997. He never said he was from a company or anything!!!!

Anyway after waffling for too long my point is that I feel my variation failed because of the high fee's from my company. If my dividend was for 36p and not 26-27p it might have been accepted.

Please , any advice would be really welcome!

Chris

[Adam Davies]

Hi Chris
I would think that fees are the problem with your IVA variation,and that,s where the difference in dividend is,but can,t really understand where you are with your IVA at present.What has your IP said ?
Are you still paying into your IVA ?
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

[Chris.z]

Hi Andy I am in an IVA still, but in arrears with it , due to many reason's , Ie. Being hastily set up , both my fault and IVA providor and splitting from my partner some time ago. I am still paying but just what I can afford and not the original 350.00 which it was set up for. This has gone on for months now ( 8 months to be precise )!! I don't want to go Bankrupt as I have said before but feel like I am being hampered by two things....

1. High Fee's over 10k in a return of just over 17k.
2. And the fact that only 1 creditor voted at my variation meeting.... Max credit who as I said in my previous post have used very underhand ways of tyring to get my new address.

P.S. What happens with a debt 10 years old??

Many thanks again and sorry for so many questions.

Chris

[catullus]

What are your reasons for not wanting to be made bankrupt? I probably am missing it but I can't see it on this thread.

[MelanieGiles]

Your IP obviously did not try very hard for you did he/she!!! Why didn't they ring round to canvas other votes? You do need to find out the reasons for rejection here, if your offer of settlement was a resonable one.

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

[Chris.z]

Hi Catallus, the main reason I don't want to go bankrupt is just around work really.... Also I feel obligated to make the best effort to pay back what I can.

Hi Melanie I wasn't really sure thats what happened , Ie. Canvassing for votes. The offer I made , Ie. a dividend of around 24p was the best I could make but as I said I have increased it to 27p by cancelling Gym membership, even though earlier Andy suggested that the actual dividend should be nearer 37p, the reason my divdend is low is due to IP fee's , and my IVA was bieng proposed over 7 years and not the 5 Andy quoted on!!

My IP assistant said reason for failure was due to only 1 voting!

Regards

Chris