Provident debt....please help??

sourcrates

supermum1988 wrote: »

Is this true? Even with the "free"/"not for profit" ones?

Who was your Insolvency Practitioner ?

Most, if not all IP`s will charge fees for setting up an IVA, I have read of one who charges no fees, but cant remember who they are off the top of my head.

supermum1988

I went with Payplan, as recommended by the gov website. It was a charity one and charged "no fees".

sourcrates

supermum1988 wrote: »

I went with Payplan, as recommended by the gov website. It was a charity one and charged "no fees".

Hi,

There are still "standard legal fees" which will of been incorporated into your plan.

See this from there website :

"All of your unsecured debt repayments will be combined so you’ll have JUST ONE, LOWER, MONTHLY PAYMENT to make.Standard IVA legal fees are built in and interest rates and charges are frozen – meaning there will be no nasty surprises or hidden charges added midway through your repayment term."

"Fees
All IVA’s charge fees. The fees charged within an IVA can depend on who is dealing with the IVA for you. All IVA’s will have fees for the Nominee and Supervisor costs, their then may be additional costs to the company. With Payplan, we only change what we have to, the Nominee and Supervisor costs. The nominee costs are for all of the work getting your IVA proposals together and everything up until the creditors meeting. This is a fixed sum and will be around 15% of the total fees. You will then have the Supervisors costs which are the charges to maintain the arrangement, these fees are usually around 40% of the total amount you pay into the IVA after 60 months.

Their will then be a few additional items to add on top of that which are VAT, the cost of arranging the meeting and any out of pocket expenses.

All of the details of the fees are detailed in your proposals so you can clearly see what they are.

You will never be asked by us to make any upfront fees; all of the fees detailed above will be taken out of your monthly payments. Therefore when your proposals state your monthly amount, you will pay only this for the fees and to your creditors.

Payplan would only ever ask for the fees on top of you payments, if you were in a position to repay your debts in full."


You will have to pay these fees regardless of the outcome of your IVA, so don't expect your debts to of dropped by much, if at all.

fatbelly

Vikipollard wrote: »

Not wishing to rain on your parade, but the £3500 you paid into your IVA will not necessarily all have been paid off the debt as your IP will have had fees which they deduct before distributing funds. Only saying this so it is less of a shock if you discover the balance is much higher than you thought.

I was going to mention this earlier - you'll find out eventually. Not a disaster but in retrospect a DMP might have been better.

supermum1988 wrote: »

Think I'm going to just get in touch with the agent, tell her not to come and contact head office ASAP to sort this mess out.

Yes - that sounds good