IVA Fees, can they charge me for this, help! Time running out

[Katiekitty]

Hello - please can anyone help me with this, I'll give a bit of background first...

At the beginning of this year, I was recommended by the CCCS to go down the IVA route. I made some enquiries with a company they put me in touch with: Grant Thornton. It seemed to be the right route to go down as they explained they would work out a payment plan for me and put it in writing. To get this, I signed a form, a 'Letter of Acting', which nowhere stated their fees - I imagined I would pay something as to go bankrupt, the fees are approx £500.

When I got the payment plan through, they informed me their fees would be a total of £5,965. I was shocked to say the least as this meant I was saving practically nothing on my payment plan once their fees were added on. I went to CAB and they advised me that painful though it may be, bankruptcy was my best option and I am indeed going down this route.

I have now received a letter from Grant Thornton requesting me to now pay £2,250 in outstanding fees as they say I have signed and accepted their fees and that they have done 'considereble work on my part in time and costs'. Can they do this? There is no way I can pay them and I haven't signed anything accepting their fees, as soon as I knew how high they were, I decided against an IVA.

I have spoken with them and they say I am being billed for it this week and there is nothing I can do but pay it. I have contacted CAB about it too, am awaiting their advice, but if anyone here can help to, I would be so grateful.

I'm at my wits end over this and feel sick just thinking about it. Can they do this? Please can anyone give me some good, legal advice on this? Thank you x

I think if you did not know about or sign anything to agree to the fees you should be OK. The CAB will give you the best advice so wait for them before speaking to this "Company" again. Bloodsuckers for you.

i had an IVA and it said when i first started it that if i cancelled within a certain amount of time, we would have to pay as they had spent time etc drawing up the paperwork, chasing up debts etc. However, we just defaulted on the payments (as advised by them as DH was redundant) and then we were sent a letter of default and we went bankrupt so didn't have to pay them anything in the end. Hope you get it sorted. There is nothing worse than unmamageable debt hanging over you. Are you going to go bankrupt?

God, I really hope so! Thank you for the angry face, it closely resembles me at the moment... I would never have agreed to those astronomical fees, totally out of all proportion and totally ridiculous. I'll see what CAB say, incidentally, speaking to CAB was the best thing I ever did, they're wonderful!

Hello Angel - well, I'm in the process of bankruptcy, however, it's in a state of weird suspension at the moment as I might have a (small!) inheritance as my mother died and once all her matters are looked after (looooong story), there may be enough to pay off what I owe. I don't owe a lot in the grand scheme of bankruptcy, but it's enough to be ruining my life. So, the bankruptcy is on hold until I get grant of probate through. It's o complicated, I bet you're glad you asked that question, Angel!
How did your bankruptcy go? Are you all sorted now?