IVA - fees if it's rejected???

moneyfritteringexpert

We're going for an IVA. OB Financial are setting it up, with RSM Tenon as practitioners.

We received a pack from RSM which includes their fees. Though they are generic/standard, it implies we have to pay £3600 if the IVA gets to a meeting and is rejected.

However, there are 2 contradictory lines:

'If our fees are greater than the amount contributed we will limit the fees to the level of monies received and waive the balance.'

But if it gets rejected, our contributions will have been £0, so they will limit the fees to £0?!

'If our charges plus VAT and disbursements do not exceed the balance of funds held by us, upon written confirmation that you have withdrawn your instructions, we will refund the difference to you.'

Again, their fees will exceed the balance of funds held by them, which will be £0?

Assured by my advisor that we will not inur any fees if it is rejected - so are these fees irrelevant and aimed at other generic clients?!

FavDaughter1

Hi, i'm not up on all the jargon,BUT, you should NOT go with any firm/ip who wants an up front fee,there is no need. fee's all come out of "the pot",ie your monthly IVA fig.

if you're un sure why not give 1 or 2 more companies a ring? you can find lots( & read reviews) on https://www.iva.com

we went with Melanie Giles. don't act in haste if you have doubts, good luck,i'm sure others who are more in the know will be along so hang in there x

FoggyBrain_2

I think this is generic as RSM also act for corporate clients who are dealt with differently. I, too, was assured if the IVA wasn't accepted no fee would be payable. And, in any event you rightly interpret their wording ---- if you have paid nothing, nothing is due.

Jam_Buttie

My IVA was with Freeman Jones who were very good. I got my self into a huuuuuuuge hole of £30,000 debt, but ended up paying just under £8000.

The fees were set out at the start of £2000 plus VAT. But these would only be payable upon completion. ieI paid just under £8000 into my IVA since 2007. The fees they take FROM the £8000 was £2000 plus VAT.

So the five creditors ended up getting £5600 split between them.