Cost of PIP

B

Baby blues

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How much will a pip be likely to cost? Press suggests up to thousands? How do I
Pay this when I can't pay current bills? Will it be written off as part of debts...... Doesn't make sense that a massive bill be issued if we are insolvent ?
 
Baby blues

The cost of the PIP will normally be deducted from the amount paid to creditors over the course of the arrangement, although many PIPs will charge some up-front fees to prepare the documents etc before the arrangement is in place in case the arrangement does not get creditors approval.
 
PH&A said:
Baby blues

The cost of the PIP will normally be deducted from the amount paid to creditors over the course of the arrangement, although many PIPs will charge some up-front fees to prepare the documents etc before the arrangement is in place in case the arrangement does not get creditors approval.
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What if someone can't afford to make any repayments, but still wants to avail of insolvency ?
 
Michaelg

Tricky situation as for a DSA or PIA to come into force the creditors need to vote to accept it, without incentive for them they probably won't go for it. I'd suggest speaking with an accountant/adviser to get a full run through of all the options available
 
PH&A said:
Michaelg

Tricky situation as for a DSA or PIA to come into force the creditors need to vote to accept it, without incentive for them they probably won't go for it. I'd suggest speaking with an accountant/adviser to get a full run through of all the options available
Click to expand...

Interesting
So in effect the poorest can't afford to become insolvent ? (Or bankrupt for that matter)
 
If you're being charged an upfront fee, you should shop around. We wont be charging an initial consultation fee, and similarly we wont be putting people forward for a DSA that we do not believe will be accepted.

If you are being charged up front, it says a lot about the confidence and ability of the PIP.

There are two parts to a PIPs payment - the first part is the 'Nominee Fee' which will work out acros the first three or four payments made into the pot.

The second part is the supervisory fee, which will on average work out at 15% of the monthly payment. This is widely accepted as the industry standard.

This is highly unlikely, as it up to the creditors to approve how much the PIP will be paid for their work

Re having no income, you would also not be able to avail of the insolvency reliefs unless you had a disposable income to contribute to it, therefore bankruptcy will be a quicker and better option.


www.frost.ie
 
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