soul destroying to find out I have to pay more

[mark66]

How much does an IVA usually cost the IP to set up and run? I have been in an IVA for five years and my IP has drawn fees from the payments as when it was 1st proposed. He has since informed mr the IVA needs to run for another 13 months to cover for these fees. I have worked it all out and I am going to end up pay over £13000 in fees. Can anything be done? I was told when taking out hte IVA it would be for 60 months I have made all those payments now and it was soul destroying to find out I was going to be paying more.



M.Artley

[BlueShoes]

Hello
I am not an expert, but my understanding was that the fees were taken from the monthly payment by your IP, so that you effectively paid them during the course of the IVA's duration. To add another 13 months onto the end seems both unfair and not particularly "upfront"
Were the fees not discussed when you first took out the IVA?
I'm sure one of the forum experts will be on later and answer your question.
Blue

[aguise]

Hi ther I think on some of the earlier ivas some of the fees were worked out on a time and work done sort of basis unlike a lot now which have set fees set out in the proposal.

Ang

[RedDevil]

Hi mark66, best to read over your original proposal documents and check the small print. The fees sound extortionate and I have never come accross IP fees added on in year 6!! Try to resolve the issue with your IP. If you feel that you are not being treated fair or do not understand their language then you could seek the advice of a solicitor. That would be a last resort. I am sure that there are other members of the forum who can help on this one.

Best regards

RedDevil

[Adam Davies]

Hi
I,m afraid that you have been caught with the IP being paid on a "time cost " basis.Have you had any variation meetings within the five years or alot of communication etc ??
It really is unfair and nowadays it would not happen.
See if your IP will agree to a compromise,if not grit your teeth and press on.
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]

Can you actually confirm the basis of the fees for us, but it does seem that a time cost basis is correct. Did you guarantee the dividend at a certain level? If not, then the creditors should bear the brunt of the fee increase and not you.

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