I have just proposed a final settlement fot my IVA. I have received the proposal which is going to be sent to my creditors and in it the fees have increased so much that the final dividend to creditors will be 37% where as going by the original fees it would have been 50% - How are they allowed to increase this so much? There was nothing about fees increasing in the original proposal. This also means that if my income was to increase a lot i could end up paying back a significant amount more than the original debt.
you will never pay back more than the original debt plus fees.
A variation meeting would have been called with your creditors and theres a fee for that.
i would have a chat to your IP who can explain the fees and give you a breakdown
These fees will need to be sanctioned by creditors, and it is reasonable for your IP to expect to be paid something for his/her efforts in putting forward alternative resolutions. Whether £1,000 is reasonable is a matter for creditors, as it is effectively their money which is being potentially spent.
Thanks for your replys. The fees for the meeting are 500 which i understand, it is the supervisors fees that seem to have increased just for the general overseeing of the IVA. They were originally proposed at 2500 for the duration and are now showing as almost 6000. I was told at the beginning of my IVA that i would not have to pay back any more than the total amount of my debt but now i am told i am liable for all the debt, plus any fees - which seem to have gone up dramatically and stsutory interest. My IVA is with Debt Free Direct
