Nominee Fee

The nominee fee is a fixed fee and covers the work we and Melanie Giles undertake in setting up your IVA proposal to your creditors. There is no charge for the debt advice provided before our appointment as your nominee.

The nominee fee charged by our Insolvency Practitioner is likely to be in the range of £750 to £2,500, with an average of £1,600.

The Insolvency Practitioner will be paid the nominee fee out of the payments you make into the IVA and these will not be paid to your creditors, so that your credit agreements that are part of the IVA will go into further arrears. The creditors are bound by the IVA proposal once approved provided that you maintain agreed payments to us.

Once your IVA has been accepted, our role then changes from Nominee to Supervisor.

It takes around 6 - 8 weeks to set up an IVA and during this period you will commence your monthly contributions into your IVA. It is likely that by the time the IVA is approved, you will have made one to two contributions which will be used as part payment of the Nominee Fee.

Supervisor’s Fee

The supervisor’s fee covers the on-going administration of the IVA, disbursement of contributions to your creditors and any reviews that are required, including an annual review. The supervisor has reasonable discretion where your circumstances change without going back to your creditors and this may affect the contributions and fees.

The calculation of the supervisor's costs and fees will depend on the proposal and is therefore subject to your individual circumstances. Wherever possible our Insolvency Practitioner's follows the IVA Protocol, an agreed approach with the major lenders, where the supervisor’s fee will usually be 15% of your monthly or quarterly payment. For employed or retired people it will be normal for contributions to be made monthly. For the self-employed there may be flexibility in payments to allow for invoice payments by their customers. Your creditors will agree these supervisory fees with the Insolvency Practitioner and they will be deducted from the money you pay the Insolvency Practitioner for distribution to your creditors.

Our supervisory fees 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.

A part of our role as your IVA supervisor we will:

• Collect your contributions into a unique bank account held in your name, protecting your funds
• Agree all your creditor claims
• Distribute the monies held to creditors usually at quarterly intervals
• Assist you with on-going reviews, notably where PPI reclaims may be relevant
• Review your circumstances at least once per year, and more often if you run into difficulties
• Assist you in presenting any variation proposals to your creditors
• Assess the impact of your IVA on your credit file before, during and after your IVA reaches completion
• Conclude your case at the end of its terms and issue you with a Completion Certificate

Where you are a homeowner, there may be a requirement to make contributions for a sixth year rather than release equity from your property. A supervisory fee will be applicable on any contributions in the extended term of the IVA.

IVA Illustration

If your IVA fails

If your IVA fails, meaning your Insolvency Practitioner formally defaults the IVA, then you will remain liable for the balance of your debt and any of our fees and costs already incurred.