Your Debt Expert is a trading style of Creditfix Ltd.
Creditfix will only charge fees if an IVA is subsequently approved by your creditors and our fees are only taken from your monthly payments or asset realisations paid into your arrangement. We also offer, as part of your proposal, to start distributing a percentage of the payments made by you from month three of your arrangement or in some cases earlier, which means the balances owed to your creditors are starting to reduce. In some cases, creditors amend the terms of the IVA so that we are not required to make payments to them until the Nominees fees and disbursements have been repaid.
In an IVA there are three different types of cost charged by the Insolvency Practitioner.
1. Nominee’s Fee
This fee covers the setting up and preparation of your IVA. This includes assessing your current financial situation and your repayment offer to creditors, issuing the Proposal to your creditors, the administration and facilitation of the creditors’ decision process used to consider the IVA, and any negotiations with creditors during this process.
The Nominee’s fee is generally a minimum of £1,000
2. Supervisor’s Fees
These fees are charged for the ongoing administration of the IVA which includes collecting and distributing your monthly repayments, dealing with any queries raised by you or your creditors, completing an annual review of your financial circumstances, reporting annually to you and your creditors about the progress of the IVA, and dealing with the closing formalities.
The Supervisor’s fee is generally based on a percentage of any monies paid into the arrangement and ranges from 15 – 20% of the payments made. In some cases a flat fee may be charged.
These are costs paid by the IP to third party companies for software licences, insurances, and registrations that are required as part of the arrangement. These may also include payments made for the provision of additional services to provide the best return for your creditors.
Typically the disbursements of the arrangement equate to around £1,200 per case.
Below is a typical example of the costs and fees charged in an IVA, where the client has £18,000 worth of unsecured creditors and is making monthly repayments of £150 in the IVA (£9,000 in total over 60 months)*.
The Nominee’s fee : £1,000
The Supervisor’s fee**: £1,200
The Supervisor’s costs: £1,200
Total repaid to unsecured creditors: £5,600
Total written off by unsecured creditors: £12,400
*This example is for illustration purposes only and actual repayment amounts and debt write off will be dependent on individual financial circumstances.
**15% of further monthly payments once the Nominee’s fee has been satisfied