Any initial advice that you receive about Individual Voluntary Arrangements (IVA) from Wilmott Turner Financial Services (WTFS) either on the telephone, via e-mail or from websites or debt forums owned and operated by us is given without charge.
If you then decide that an IVA is right for you, there are some costs associated with an IVA that you need to understand.
Tip: Generally speaking these fees are standard across all companies providing IVA services. However they may be subject to change if you are self employed or your circumstances are unusually complex.
You should not have to pay any fee up front to start an IVA.
Be very wary of any IVA company or IP asking you to pay them an upfront fee to propose an IVA. This is no longer the normal practice of IVA companies. Most reputable IVA companies will not charge any upfront fee and paying one will certainly not give you any additional guarantee that your IVA will be successfully agreed by your creditors.
The first payment you make should be the first of your agreed IVA payments once the IVA is successfully in place.
Once your IVA has been accepted by your creditors you will start making your normal monthly payments as agreed in the arrangement. Alternatively you might just pay a single lump sum in the case of a full and final IVA. Either way as soon as you start paying into your IVA your Insolvency Practitioner (IP) will be allowed to deduct their standard fees from the payments you make.
The Insolvency Practitioner fees will include the following:
The Insolvency Practitioner who presents your IVA proposal to your creditors is called the your Nominee. The work of the Nominee includes agreeing your IVA proposal with your creditors. This work includes:
– An initial meeting (normally on the telephone but could be face to face) to fully understand the details of your income, expenditure, assets and income
– Gathering supporting documentation and preparing your IVA proposal document
– Liaising with your creditors if necessary
– Convening the meeting of your creditors, chairing the meeting and again liaising with creditors on any queries or modifications they request
The Nominee Fee charged for this work is normally between £1000-£1500. You do not have to pay this fee directly. It is taken from the normal payments that you make into your IVA.
Once your IVA is accepted by your creditors, your Insolvency Practitioner’s role will normally change from being the Nominee of your IVA to being the Supervisor. It is possible for your creditors to request a different supervisor but this is rare. The work that the Supervisor must undertake includes:
– Monitoring the contributions you make into your IVA
– Making payments to your creditors as required (monthly, quarterly or annually)
– Generally monitoring the progress of your IVA in accordance with the proposals
– Carrying out an annual review of your case (or at intervals required by your creditors)
– Working with you to manage any changes in your financial circumstances
The supervisor fees charged for this work are charged each year that your IVA runs. They are normally based on 15% of the amount that you pay into your IVA after the Nominee fee and initial costs have been deducted.
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