Individual Voluntary Arrangement Fees

Instruction Fee

The person who sets up and manages your IVA is called an 'Insolvency Practitioner' (IP). Since Insolvency Practitioners are very highly qualified and have a lot of work to do, they use people like Beat My Debt to prepare IVA cases for them.

Some companies will charge an upfront instruction fee to carry out this work. However, Beat My Debt will NOT charge you any upfront fees to prepare your IVA case.

How we get paid

When you make IVA contributions to your creditors, they set aside some of this money to pay the Insolvency Practitioner. There are two payments made: the 'Nominee Fee', which pays the IP for proposing the IVA, and the 'Supervisory Fee' which pays te IP to oversee it until it ends. The IP shares this money with the people who prepare the IVA cases - that's how Beat My Debt makes money.

All IVA providers get paid in this way.

Nominee Fee

The Nominee fee is the fee charged by the Insolvency Practitioner to act as Nominee when presenting your IVA proposal to your creditors. This is a standard fee taken by all Insolvency Practitioners and will normally be between £1000-£1500.

Note - The nominee fee is deducted from your normal monthly IVA payments which have been agreed. You do not have to find any additional money to pay this fee.

The nominee fee covers the Insolvency Practitioner’s work in setting up your proposal to your creditors. This work includes: Initial advice/meeting to obtain full details on your property/ assets/ income and expenditure, preparing a full statement of affairs, gathering supporting documentation and preparing your proposal, liaising with creditors, convening the meeting of creditors, attending the meeting and again liaising with creditors on any queries or modifications they request.

Supervisors Fee

Each year that an IVA runs, the Insolvency Practitioner must supervise the arrangement on behalf of the creditors. In return, the creditors agree that the Insolvency Practitioner will be allowed to draw a supervisors fee on an annual basis.

The supervisor’s fee covers work includes an annual review of your case (or at intervals required by your creditors), monitoring your contributions, making distributions to creditors and generally monitoring the progress of the IVA in accordance with the proposals.

As a standard, over the course of the IVA, the supervisor fees are normally 15% of the total amount that you pay into your IVA after the nominee fee has been deducted.

Note: As with the Nominee Fee, any supervisor’s fees are deducted from your normal monthly IVA payments which have been agreed. You do not have to find any additional money to pay these fees.

Creditor Arrears / Effect on credit rating

You should understand that when you start an IVA, you will stop making your normal monthly payments to your creditors. This means that your accounts will go into arrears or further into arrears. This will have a negative effect on your credit rating.

If your IVA fails you will remain liable for the total outstanding balance of your debt plus any arrears and the insolvency practitioner fees and costs incurred.

External Partners

Beat My Debt works with external insolvency practitioners Liberta Financial.

Once Beat My Debt has completed a statement of affairs on your behalf, your file will be forwarded to Liberta Financial so that they can begin the task of proposing your IVA.

Part of the nominee fees received by Liberta will be paid to Beat My Debt to cover the work we have done completing your statement of affairs.

For a copy of the Liberta standar terms and conditions of trading for protocol compliant IVAs, please see the "Related Documents" box above.

Cooling off period

Working with Beat My Debt means that you will NOT be charged any upfront fee to start the IVA application process.

Once you have started the process, it will take approximated 8 weeks for your IVA to be implemented. You can cancel the application process at any time during this period. However, once your IVA has been accepted at the creditor meeting, you will be legally bound to meet the terms of your IVA. 

More Information: Expert articles

To read articles about individual voluntary arrangements written by our experts please click on the expert articles and news link in the "Useful Links" box below.