www.iva.co.uk

is it normal to pay the iva monthly fee before the creditors have been involved

Good question,

i have just started the process too, and have been told there will be a one month fee up front.

I think this is normal due to the admin etc, and if an IVA doesnt work, the money will get transferred across to a financial management plan. (well thats what my IP told me!)

No need to pay up front fees - can you really afford it?

Most of the IP companies on this site don't charge anything up front I believe.

I am with ClearDebt and nothing was asked of me. They even paid all my postage...!

Some companies do ask for the first months payment, but I would make sure that you are going to be refunded if your IVA is not approved.

Payplan usually ask for the first months payment, but we couldn't pay it as we had no chequess or debit cards so we just set up the standing order as soon as we were approved.

Payplan stated on the letter informing me of my creditors meeting that the first payment would be required on the day of the meeting if the IVA was accepted, however when they called to say it had been accepted they asked me what day i'd like to pay - i said after pay day and they said fine - bonus!!!!

its just that its says in the paperwork that as soon as they recieve the documentation and the fee on the 30th of this month then they will start the iva process. he said that my finance problem is pretty straight forward and that there shouldnt be a problem but what if only 65% agree to the iva rather than the 75% what happens then very conused by it?

Which company are you using?

They can start the process without having your payment. If your IVA is rejected for any reason then you can revert to a debt management plan at least temporarily while you sort out what to do after that.

If you are not happy with the company you are going with now, it is not too late to change.

Visit www.iva.com for a list of companies and reviews. They will give you free and impartial advice about all your options and I don't think many of them ask for upfront fees.

Hi
I have paid no upfront payments,and according to the proposal while the standing order is completed, the first payment is due within 30days of the IVA being approved.

the company i am using are freeman jones.

the letter i reeived from them this morning with my paperwork just said that to fill it in with the balances and references numbers and as soon as i had completed the first payment due on the 30th april they would start the procedures.

what happens if the creditors refuse the iva proposal?

If the proposal is rejected then your other two options are a Debt Management Plan, or Bankruptcy.

I would recommend that you ring another company from www.iva.com - you could get the ball rolling a lot quicker than the end of the month without any upfront fees and with a company which is recommended.

thanks for the advice i will c what happens when they recieve my paperwork maybe i red it wrong i will phone them on monday to c what happens next

I ask for the first payment when we get clients to sign the proposals prior to the creditors meeting. I personally feel that you are being asked for this at too early a stage, as they have not even reviewed your case thoroughly yet. If you are going to pay it, make sure it will be returned to you in the event that the IVA does not go forward.

Freeman Jones are the company that I am dealing with and as far as I can remember from the conversation I had with them there are no up front fees, in fact they told me they don't get paid until the IVA is complete, they then take a % from the pot - so to speak -

I've got paperwork arriving soon, I may just hold onto it and speak to someone else as well.

I'm sure with a lot of IVA's that the fees come out of the first years payments, but perhaps different firms work in different ways.

Sometimes a months payment is asked for just as a kind of good will gesture to the creditors.