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First year review!

Hello,

I just have a question about my first year. I am paying £282 p/m on debt of £35k.

My review has come back as follows:

Contributions from debtor 3,384.00
Interest 1.69
Total 3,385.69

Payments:
Nominee’s fee 2,500.00
Disbursements 350.28
Irrecoverable VAT 494.24

Total payments 3,344.52

Balance at bank 41.17

So I pay my creditors £41.17. Is this normal after the first year?

Thanks for your advice

No you don't pay your creditors £41 - this is the figure that the IP is holding in his bank account. The fees are always higher during the first year, as the nominee fee has to be recovered in priority to the payments to your creditors, so it is quite normal to see nothing returned to creditors until the end of the second year. If you read your IVA proposal thoroughly, the estimated timings for contributions ought to be clearly shown.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

Hi
Some creditors want this system changed so that IPs receive their fees proportionally through the term of the IVA,rather than in the first two years.I welcome this as an IP is more likely to be focused on the case if their fees depend on it.
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

Hi Andy

I had mods that not only reduced the ip fees but made payments of them proportional. I was told these were fairly standard mods. Perhaps they are becoming more common?

Hi Faculty -

As you only have a small amount over after the Nominees Fee and VAT - what will happen about your Year 1 Supervisors Fee? I assume that there will be 2 Years Supervisors Fee deducted over the next 12 months?

Did you get a breakdown of the Disbursements?