The costs of proposing and administering an IVA have to be agreed by you and your creditors. These costs are usually drawn down from the monies you pay into the IVA, and it would be unusual for you to be asked to pay anything prior to your IVA proposal being finalised.
There are two fees which are chargeable during the presentation and management of an IVA:
This is agreed prior to the presentation of your proposals, but can often be later amended by creditors. This fee covers the following aspects of the work undertake -
Depending upon the nature of your case, and the amount of work deemed necessary on an ongoing basis, fees may be charged on a fixed annual sum, or as a percentage of realisations or sums distributed – usually at 15% plus VAT. For this fee the Supervisor will:
The Supervisor’s fees charged by companies within the PJG Recovery, generally range from £360 to £1,000 per annum and these are drawn from the monies you introduce into the IVA with the agreement of your creditors.
The Nominee’s fees charged by companies within the PJG Recovery Group generally range from £750 to £2,500 and average at around £1,600 plus VAT.
Once your IVA has been accepted, the role then changes from Nominee to Supervisor.
There will be a fee for setting up and administering your trust deed. This work includes (but is not restricted to): an initial meeting with a client or clients, post-meeting review and confirmation of options, preparation of trust deed document for signing, signing meeting, data input of details, advertising the trust deed, circularisation of correspondence to creditors, continuing correspondence with creditors and client as required, receiving and adjudicating creditor claims, review and realisation of assets where required, current status updates, statutory reporting to creditors and the Accountant in Bankruptcy, pursuing claims as required, preparing and distributing dividend payments to creditors, obtaining both the client’s and the Trustee’s discharge from the Trust Deed.
The fees charged will depend on your individual circumstances. They will be paid before any money is available to repay your creditors. Fees charged by companies within the PJG Group normally range between £2500 and £4500 (net of VAT and outlays).
Companies within the PJG Recovery Group refer debt management providers – both in the charity/fair-share sector and also to commercial companies, as well as The Citizens Advice Bureau. In the event that a client confirms a preference to use a commercial company, companies within the PJG Recovery Group recommend Vincent Bond, Eurodebt and Brightoak.
Where a company provides a debt management plan the details of their charges will be provided to the client in advance of their commencement with the plan.
Call us now on (NI & ROI) 02891 814890 (UK Mainland) 02920 346530 or fill in our online enquiry form and one of our insolvency experts will call you back. We will discuss your situation with you ensuring that we fully understand your circumstances and what is important to you; we will then discuss your options with you and advise whether a Trust Deed is the most suitable debt solution. One of our Insolvency Practitioners will then guide you through the process, making sure it is as hassle-free as possible.
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