Author Topic: IP wants paying up front. Is that normal?  (Read 2733 times)

GaryO

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IP wants paying up front. Is that normal?
« on: Sep 22, 2007, 06:52:42 PM »
Hi all. I've just been to see an insolvency practitioner about my £20K debt. They suggested an IVA but I was pretty shocked when they said I would be charged £1300. What if it all goes pear shaped? All I've got is another £1300 to find for nothing!

Chris

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Re: IP wants paying up front. Is that normal?
« Reply #1 on: Sep 22, 2007, 09:43:54 PM »
Gary, are you sure the fee was not dependent on a sucessful outcome? That is the normal structure.

I would not go near an IP that demands a large up-front fee up whatever the outcome. If the creditors meeting fails you have lost £1300 at the first hurdle. And it does happen. There are a number of unscrupulous companies that feed off cases where they know there is little chance of the success yet go ahead anyway to pocket the initial fees. Shame on them.

GaryO

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Re: IP wants paying up front. Is that normal?
« Reply #2 on: Sep 22, 2007, 10:00:21 PM »
Quote from: Chris
Gary, are you sure the fee was not dependent on a sucessful outcome? That is the normal structure.

That wasn't the impression I got. But I will double check with them. Thanks for the reply.

IVA.com

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Re: IP wants paying up front. Is that normal?
« Reply #3 on: Sep 29, 2007, 12:12:26 PM »
Hi Gary,

I understand that some IVA firms do charge fees up-front although many do not. 

Kind regards,
Terry Balfour
IVA.com