Our Fees

We strive to find you the most appropriate debt advice. Our initial debt advice is always free of charge. However, a fee will be payable depending on the debt solution recommended. Please follow the links below for more information on why we take the fees.

• Individual Voluntary Arrangement fees
• Debt Management fees

Individual Voluntary Arrangement Fees

There are two types of fees within an IVA: a Nominee's fee and a Supervisor's fee.

Nominee's fee
Before an IVA is presented to creditors, the insolvency practitioner acts as your Nominee and is required to arrange a report and to determine whether the IVA has a realistic chance of success. The Nominee's fee covers this initial work, including:

• Drafting the IVA proposal - background of your finances and the proposed terms of the IVA
• Arranging the creditors' meeting

Supervisor's fees
As soon as your IVA is accepted the IP then becomes your Supervisor. The IP will supervise and maintain your IVA throughout its term (usually 5 years).

The Supervisor's fee covers this ongoing work, including;

• Completing annual reviews of your IVA
• Providing reports to creditors
• Distributing dividend payments to creditors
• Addressing any major issues that arise: if your financial circumstances change, for example as a result of maternity leave, your IP may arrange an IVA variation (a legally binding change to the terms of your IVA, designed to help you bring your IVA to a successful close).

Payment of fees

All IVA providers charge fees in line with an agreed scale set by creditors. Fees are taken from the monthly payment you make towards your IVA. No additional fees are taken. Fees depend on the amount you owe and how much you can afford to pay during the IVA. Your IVA proposal will detail the exact amount of fees being charged by the IP.

The following example shows typical fees and payments in an IVA:

Nominees fee	£1,275
Supervisors fee	£2,475
Expenses	£290
VAT	£656
Typical monthly payment	£300
Total paid by individual	£18,000
Amount owing at the start of the IVA	£31,000
Net paid by creditors	£13,304 (43%)
Amount written off at the end of the IVA	£17,696 (57%)

*Example based on a typical client - with unsecured debts of around £31,000, who has no equity in any property and completes a 5-year IVA.

Note: It's essential that you keep up with your monthly payments to your IVA - if you don't, your IVA may fail, which means you will be liable for the outstanding balance and any costs already incurred.

IVA's do offer some flexibility. If you run into any difficulty while your IVA is in progress, you should contact your Supervisor immediately. The IP can request changes to payment plans and call further creditor's meetings to gain approval of variations to the proposal if needed.

Debt Management Plan Fees

Debt Management Plan fees are in two categories:

• An initial fee - your first two monthly payments and an administration fee of £70.
• Ongoing monthly fees, which are 17.625% of each monthly payment you make or a minimum of £35 (whichever is greater).

Your initial fee covers the work involved in setting up your debt management plan as follows:

• Reviewing your monthly payment proposal
• Preparing the financial statement
• Calculating your reduced monthly payments
• Talking to your creditors and negotiating the terms of your debt management plan

Your monthly management fees pay for all of the ongoing work needed to make your plan succeed including:

• Distributing payments to each of your creditors
• Handling correspondence from your creditors
• Putting together and sending your quarterly statements
• Ensuring the monthly payment is affordable to you