£15,000 fee for 6 month IVA extension!

JasJbs

I attended a meeting with my IVA supervisor to sign the paperwork relating to six month extension to my 5 year VA, and to also 'have an adult conversation about his fees'

There was no 'conversation' about fees, I was simply told that he was not prepared to carry out any further work unless I agreed to his fee of a further £15,000 in addition to their 5 year fixed fee of £15,000.
He had prepared a fully detailed account of his costs to date which he said amounted to circa£42,000.
Although he admitted that the fixed price fee would have to be honoured, had the va completed on time, he said that the additional fees would be paying for further work.

My IVA was complicated from the start, several properties, 4 of which were in joint names, many creditors, all of whom receive 100% of the capital debt.

I have repaid £140,000 pounds over the past five years from sale of property and contributions, always paid my contributions on time, and have £90,000 still to repay which will be repaid on the sale of my home.

My home was put on the market, at market valuation, 6 months before the end of the 5 year term but has yet to sell, hence my request for an extension.

Am I being unreasonable in thinking that the additional fee is disproportionate and/or unfair?

sourcrates

Hi,

That sounds a lot of money, however it's difficult to advise as IP's can charge whatever fee structure they choose basically, it depends on the work they have done for you.

National Debtline is the place to go for help with this, you can also complain to your IP if your not happy, and if still unresolved, take the matter further :

https://www.gov.uk/complain-about-insolvency-practitioner

DorisTrousers

It is very difficult to advise in any great detail as we do not have the relevant documents to do so.

I would assume, though, that any extra fees, and possibly even the extension itself, would have to be signed off by the creditors via a variation meeting, it seems extremely unlikely that an IP can just make figures up off the top of his head. There may have been something to cover that in the original proposal though, so best to check that first I reckon.