Iva _ not going so well !!

Contracts_Engineer

Im confused. I believed that over the term of five years the IVA company would take part of your monthly payment as their fee. Therefore at the end of the five years this may equate to a whole years payments?? How can an IV comapny take all of your first years money and not pay your creditors? I presume as the IVA has been accepted the only people hassling you are your IVA company?

debtinfo

It will depend on the agreement but usually the creditors are not paid each month like in a DMP, you pay the supervisor, he saves this money up and makes dispersments to creditors at certain points, perhaps yearly perhaps at the end of the 5 years. Most supervisors write into the agreement that the whole nominee and supervisor fees get paid before any creditors are

amenra

mtgg wrote: »

HI,
We have just paid our last payments after a hard 5yrs and Our IVA will end on Monday 4th October.
We have been with Freeman Jones and they have always been very fair with us.
We always knew what there fee's were and that they would take their money first. We had £86k in debts and have been paying back 25pence in the pound.
We could of gone bankrupt, but then they would not have got anything from us.
We have needed part payments breaks in the past & we have provided receipts etc & it has been granted. But, they do need these amts to be made up. Ie if we only make a half payment the other half is made up over 18mths, so £250 would be split by 18 & this is the extra amt we have paid on top of the normal IVA payment.
Going bankrupt was not an option for us as i work in the financial industry I also work for my mortgage provider etc.

Hope things do go a bit easier. It may be worth speaking to CAB
Thanks
Clare

This is odd Clare - We owe 27,000 and we are paying 44 pence in the pound to Freeman Jones

amenra

Contracts_Engineer wrote: »

Im confused. I believed that over the term of five years the IVA company would take part of your monthly payment as their fee. Therefore at the end of the five years this may equate to a whole years payments?? How can an IV comapny take all of your first years money and not pay your creditors? I presume as the IVA has been accepted the only people hassling you are your IVA company?

Yep , the IVA company are most definatley hassling us , Continously.

amenra

Many Thanks to every one who has given me their experiences , Good & Bad here on the forum.We do feel a bit more positive.I spoke to National Debtline and they have told us that , for a 27,000 IVA , we should not be paying 44 pence in the pound , based on a 200.00 pounds a month payment.
They have told me to request all payments i have made from Freeman Jones and all the payments they have made in written form.
They have also asked me to request full statments from Gregory Pennington , when we were on a DMP also.The advisors advice was , that we were paying too much for our IVA based on our income , she intimmated that our IVA costs were far too high and after calculating our Income & Expenditure for a second time , she felt that 100.00 was a more realistic figure.
I telephoned Freeman Jones with this new evidence , i was told that the National Debtline should not interfere with an IVA in progress and that unless i made all the payments , they would advise my creditors to sue for Bankruptcy , I thought they were meant to be helping me?I have requested all my payments from them and Gregory Pennington within 40 Days , however i won't hold my breath !
I wished i had never bothered with a DMP or an IVA , I just feel in debt and ripped off now !

Tony

Charco_2

You've certainly had a bad run of it... not all Debt Solutions companies are as incompetent and greedy as the ones you've mentioned though!

The fees your IP collects for his work are split into two, Nominees and Supervisors.

Nominee includes all the work carried out to bring your case to a creditors vote, and supervisor is everything thereafter.

When you start paying your IVA, your IP is owed his fee for Nominee and is entitled to reclaim this from the first payments. The IP then has supervisors fees to collect each year for the duration of your IVA.

So in your first year, your first five repayments are likely to go straight to your IP for work already carried out, then possibly the next three payments are used to cover supervision costs. So in your first year, your creditors actually see very little of the contributions you have been making. This however is agreed between your creditors and the IP and does not result in extra payments from you.

From what I have heard from the Original Poster here, I would suggest he has been vey badly advised and should seriously consider Bankruptcy... and not to pay another penny to FreemanJones! You may as well rip your money up and throw it in the gutter! Make an officialy complaint about Freeman Jones too to their regulators... and take delight in actually phoning FreemanJones up to ask for the details!

Make it clear that you informed Freeman Jones that you could not afford ongoing repayments at the agreed monthly rate and that instead of offering help, advice or a review, they threatened you with Bankruptcy... if they had instead offered to discuss bankruptcy with you, you would understand it better and know that it's not that scary a prospect in your situation. Paying £200 a month you can ill afford to an IVA, or paying nothing into your BR! It's a no brainer!
Also mention the constant harrassment when you missed a payment...