Fees

Fees

In an IVA, a licensed Insolvency Practitioner (IP) assigned to your case will first act as Nominee and then Supervisor, drawing a fee for both services. The level of fees we propose depend on your individual circumstances and the level of the Nominee’s and Supervisor’s fees and expenses will be detailed in your IVA proposal. These fees may be calculated as a percentage of contributions paid by you, or as a fixed fee or on a time cost basis. It will be for the creditors to decide the basis and amount of such fees.


The fees will be payable from the monthly contributions that you make. We do not charge upfront fees.


Your creditors will decide whether our fees are reasonable and they can reduce our fees at the meeting of creditors. In effect it is your creditors who take the burden of the fees because the fees reduce the amount that creditors receive but the amount you pay into the IVA stays the same.

Our fees are taken from your monthly payment or asset realisations paid into your arrangement.



Nominee’s fee - (£2,400)


The Nominee’s fee is a fixed fee to cover the set up costs of the IVA and assistance with the preparation of the proposals:


  • Preparation of your IVA proposal.
  • Convening and holding the creditors meeting.


Supervisor’s fees - (£2,100)


The Supervisor’s fees will cover the on-going supervision and maintenance of your IVA for the agreed term (usually 5 years). Your IP along with suitably qualified members of their staff will undertake some or all of the following;



  • Regular reviews of your IVA
  • Preparing and sending statutory reports to your unsecured creditors
  • Agreeing the level of your unsecured debts
  • Making payments (paying dividends) to your creditors in accordance with the terms of your agreed IVA proposal
  • Liaising with your unsecured creditors
  • Liaising with you whenever you have any questions
  • Re-assessing your circumstances if they change during the term of the IVA, and reporting this to creditors where necessary
  • Annually assessing your income and expenditure
  • Generally ensuring that the IVA runs satisfactorily for you and for your unsecured creditors
  • 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.



What we charge:



United Insolvency operates a fixed fee model of £4,500 which incorporates the Nominee fee, Supervisory fee and all costs and expenses associated with the arrangement.


  • Nominee fee - £2,400
  • Supervisor's fee - £2,100 (We will charge an additional 15% on any other asset realisations that may come into your arrangement, for example, windfalls or compensation for mis-selling claims.)



By charging an overall fixed fee of £4,500 to include all costs and expenses of the IVA and by making payments to your creditors from month 3 we believe we are offering a fairer allocation of your monthly contributions.


Note: It is essential that you keep up with your agreed monthly payments into your IVA. If at any point during the term of your IVA you feel you can no longer afford the payments agreed, you must contact your IP or their staff to discuss.


Contacting us to discuss any payment difficulties you are experiencing or changes in circumstances is essential, IVAs do provide an element of flexibility, you may be allowed to payment break if you come up against unexpected costs (such as essential home repairs), or the IP may be able to request that creditors agree to amended terms that suit your change of circumstances.



If you fail to keep up with your agreed payments and do not contact your IP to discuss this, your IVA may fail; leaving you liable for payment of your unsecured debts at their original contractual payment level and in some cases you may be liable for the payment of the outstanding IVA fees. If a further meeting of creditors is needed to vary the terms of your IVA, we may ask your creditors for permission to draw an additional fee to cover our costs.

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