Fees

IVA Fees

• Fees and costs will be identified and explained in your IVA proposal and will be agreed by your creditors as part of the voting process.
• The fees and costs will be paid from the monthly contributions made into your IVA.
• The Insolvency Practitioner will initially act as your Nominee. Once the IVA is approved, they will become your Supervisor. There will be a fee for each role. There will also be out-of-pocket expenses called disbursements that will be recovered from within contributions made.
• The level of fees may be different for each case and will depend on the individual circumstances. The fees may be calculated as either a fixed fee or a percentage of monthly contributions.

Nominee’s Fees

This is usually a fixed fee and will cover the initial stages of the IVA process including preparing your IVA proposal and then convening and holding the creditors’ meeting

Supervisor’s Fees

Although we will request to creditors that this is a fixed fee, creditors may request that it be calculated as a percentage of monthly contributions received into the IVA and taken over the lifetime of the IVA. This will cover the supervision of your IVA to include the following:

• regular reporting to yourself and your creditors
• regular review of your circumstances including your income and expenditure
• liaising with the creditors to agree on debt levels
• making distributions to your creditors
• dealing with any queries
• ensuring compliance with all statutory requirements

An illustration of fees in a typical IVA is as follows:

Trust Deed Fees

• The fees and costs will be paid from the monthly contributions made into your Protected Trust Deed.
• The trustee of a Protected Trust Deed is entitled to a fixed fee for the full administration of a Protected Trust Deed and an additional fee, based upon a percentage of the total assets and contributions that the trustee has realised during the period of the Protected Trust Deed. Section 183 of the Act refers
• The amount of the fixed fee and the percentage figure, upon which the additional fee will be calculated, must be recorded on Form 3, Part 1 and circulated to creditors during the relevant five-week period and then submitted to Accountants in Bankruptcy, with Part II of Form 3, when the trust deed is presented for protection.

Trustees Fixed Administration Fee

This is usually a fixed fee (£2,500.00 this can vary dependent on the creditors) and will cover the initial stages of the Trust Deed process including preparing your Trust Deed proposal and the 5-week period during which creditors can object.

Permanent Trustees Fee

This is calculated as a percentage (20% usually although this can vary dependent on the creditors) based upon the total assets and contributions that the trustee has realised. This will cover the supervision of your Protected Trust Deed to include the following:

• regular reporting to yourself, your creditors and the Accountants in Bankruptcy
• regular review of your circumstances including your income and expenditure
• liaising with the creditors to confirm outstanding debt levels
• making distributions to your creditors
• ensuring compliance with all statutory requirements

An illustration of fees in a typical Protected Trust Deed is as follows: