IVA Advisory Service and Individual Voluntary Arrangements (IVA) Fees
For Blair Endersby to provide the IVA Advisory Service there will be an IVA Advisory Service fee. This is calculated from the financial information provided to us in the application process and is broadly equivalent to 2 months of your calculated disposable income.
This payment will be used to help cover our costs in assessing your financial position, reviewing your documentation and for our professional services and for passing your case to the Insolvency Practitioner. The IVA Advisory Service Fee is retained by us and will not be allocated towards your IVA or paid to your Creditors and can be paid in two separate instalments.
IVA Fees (Insolvency Practitioner)
Once your case is passed across to the licensed Insolvency Practitioner, all the costs associated with your IVA (as relevant) are included in the payments you make in to it.
There are two kinds of fee involved in an IVA – the Nominee fee and the Supervisor fee. Please see below for an illustration of the fees and payments on an example client’s IVA.
You will be informed separately in the IVA proposal from the Insolvency Practitioner of the proposed fees, tailored to your personal circumstances before you have to commit to an IVA. IVA fees are variable dependent upon the monthly contribution to the arrangement and the agreement that is reached with your creditors. Fees are included as part of your monthly contributions.
Example based on a typical (average) customer, with approx. £31,000 of unsecured debts who completes an IVA lasting 5-years and has no equity in a property.
A breakdown of typical payments and fees on an IVA:
| Total paid by individual (including fees mentioned below) | £18,000 |
| Total unsecured debt effectively written off on completion | £13,000 (42%) |
| Typical Monthly payments (x60 months) | £300 |
| Nominee's fee (already included in the monthly payments) | £1,812 |
| Supervisor's fee (already included in the monthly payments) | £2,890 |
| Supervisor's expenses (already included in the monthly payments) | £290 |
Nominee's fee
This is a fixed fee and is decided by your creditors. It will cover the work that goes into setting up your IVA – a process which includes:
- Drawing up your IVA proposal. This is the document which must be approved by enough of your creditors for your IVA to start. It defines the proposed terms of the IVA including how much you would pay and what each creditor would receive, etc.
- Setting up the creditors meeting. At this meeting your creditors will decide whether to formally approve your IVA proposal, reject it, or request changes to it.
- Assessing any suggested changes. If any creditors have requested changes to your IVA proposal, your Insolvency Practitioner will advise you on whether you should accept those changes - or consider a different approach to your debt problems.
Depending on the agreed terms of your IVA proposal, your first monthly payments will go towards paying the nominee's fee before your creditors receive any money. After the nominee's fee has been paid, a percentage of each monthly payment will be taken as supervisor's fees, as detailed in your IVA proposal.
Supervisor's fees
The supervisor's fees will cover the ongoing supervision and maintenance of your IVA up until completion of the IVA.
- Your Account Manager will deal with any day-to-day issues that arise, ensuring your IVA runs smoothly.
- Your Insolvency Practitioner will carry out regular reviews of your IVA and address with you any more serious issues that come up - if, for instance, your financial situation worsens, and you need your Insolvency Practitioner to arrange an IVA variation to the terms of your IVA.
Supervisor's expenses
The supervisor's expenses will cover the necessary legal and administrative costs which are incurred by the Insolvency Practitioner in implementing the arrangement in line with the terms of the IVA. For example bonding fee and postage costs.