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Author Topic: IP wants paying up front. Is that normal?  (Read 2779 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!
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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.
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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.
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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
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