Trustee and IPA/IPO fees.

james140101

Will the trustee costs be calculated into the IPA/IPO?

mwarby

As far as I understand it the appointment of a Trustee has no effect on what you have to pay into bankruptcy.

As I understand it the only reason for appointing a trustee, is that the case is complex or involves big assets. The main purpose of the trustee is to relive burden from the official reciever

Flyright

A trustee appointment does not have to be asset-driven. Creditors can request the appointment of a trustee to replace the Official Receiver.

fermi

Not calculated in, no.

A trustee may take a different view on what constitutes your 'reasonable domestic needs' which is what the law says they must allow you when looking at an IPA/O, but in the end if you disagree with the trustee and think they demand too much on an IPA/O you can refuse to sign an IPA and tell them they will need to let the court decide on what is fair if they wish to impose an IPO. As the courts should be fair, an unreasonable trustee is unlikely to chance their arm with that. Just as the OR themselves rarely goes that far.

Rrushi_Shqiptar

They will in my experience take every last penny you have. My IP and Home Secretary fees were astronomical. They did sod all work, they were rude, they never followed up my calls. I am surprised they are allowed to act in such away. over £35k in fees etc as a result only one company received any money and that was a secured debt (Mortgage) that was paid off. The others received nothing including the original creditor and that was for under 1k.

They just run roughshod over you in my opinion.

Sorry just my experience of (can I name them here?)

debt_doctor

Rrushi_Shqiptar wrote: »

They will in my experience take every last penny you have. My IP and Home Secretary fees were astronomical. They did sod all work, they were rude, they never followed up my calls. I am surprised they are allowed to act in such away. over £35k in fees etc as a result only one company received any money and that was a secured debt (Mortgage) that was paid off. The others received nothing including the original creditor and that was for under 1k.

They just run roughshod over you in my opinion.

Sorry just my experience of (can I name them here?)

I really couldn't of put it better myself!
Licenced thieves.
DD

james140101

What about in the event that I have no assets?

I'm only ever going to be contributing towards the bankruptcy through an IPA.

fermi

If they try to impose an IPA/O that is not fair or you can't afford, then you tell tell to "try it in court".

james140101

fermi wrote: »

If they try to impose an IPA/O that is not fair or you can't afford, then you tell tell to "try it in court".

My biggest worry is that my attempts to clear the debt through an IPA will fail because the trustee will impose huge fees onto the bankruptcy.

mwarby

In general, in bankruptcy repaying creditors off in any significant amount is very difficult due to the fees. The chances are any sacrifices you make in your budget will make no difference to what the creditors receive.

I suggest that your main worry should be ensuring the bankruptcy goes smoothly and that you have a reasonable standard of living for the next 3 years.