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IVA : Who Pays The Bill For My Individual Voluntary Arrangement?
"Who pays the bill or fees for an Individual Voluntary Arrangement ?" is a very natural question to ask oneself, especially if you are considering using the Individual Voluntary Arrangement process to become debt free.
There has been much debate over this subject in recent weeks, and as a result of this debate, and a call for clarity from the OFT, myIVA-Adviser.com has decided to clarify as much as possible, how an IVA is paid for and what the payment process is.
The Insolvency Practitioner will charge his professional fees for the work that is done before and after a successful IVA creditors meeting, and for the full term of the IVA.
The amount that the Insolvency Practitioner charges in fees for the work done on each IVA case is detailed within the IVA proposal, a copy of which is sent to the IVA client, otherwise referred to as the debtor, and each creditor named in the IVA proposal.
The Insolvency Practitioner's fees are sanctioned by the acceptance of the IVA at the creditors meeting. It is not unusual, however, for there to be request for a reduction in the level of fees the Insolvency Practitioner should charge, should creditors require it.
The timetable for the payment of the Insolvency Practitioner's fees are laid out in the IVA proposal.
The Insolvency Practitioner will draw their fees from the monies paid into the IVA fund by the debtor.
The debtor's payments into the IVA fund will not be affected by the drawing of the Insolvency Practitioner's fees, as the debtor's payments will have been set at the level which the debtor can afford, and no higher.
When the debtor has finished paying their agreed number of IVA payments into their IVA fund, and after they have released any required equity from their property (should they own one), the IVA will have been completed successfully, and a certificate of completion will be issued by the Insolvency Practitioner to the debtor, the debtor will then be debt free.
Any debt which has not been repaid in full by the debtor to the creditors in the IVA will, by the terms of the IVA agreement, be considered 'settled in full'.
It is important to realise that should a debtor fail to complete the IVA through to full term, it is likely that the creditors will instruct the Insolvency Practitioner to petition for the debtor's Bankruptcy, and at this point, any insolvency fees drawn by the Insolvency Practitioner will not be refunded to the debtor or creditors.
Here at myIVA-Adviser.com, we have a no nonsense approach to the fees our Insolvency Practitioner should charge for the work we undertake.
Our pledge to you is :
'If we do not manage to get you an IVA, through no fault of your own and after telling you that we can, we will refund any money you have paid into your IVA account in full.
Quite simply...
No Individual Voluntary Arrangement - No Fees
But there are some other Individual Voluntary Arrangement companies that will charge you fees, and this is how....
In the event of your case being rejected by the creditors, some other Individual Voluntary Arrangement companies will still expect to bill you for the preparation work done on your IVA case, and even though you didn't have your Individual Voluntary Arrangement accepted they will expect you to pay their fees.
In this situation you could be expected to pay perhaps 3 or 4 months repayment contributions. If you are making monthly payments of £350 per month, that could be a bill for as much as £1,400.
This is just further proof that making the right choice of Individual Voluntary Arrangement company to represent you is essential.
Read the myIVA-Adviser.com No-nonsense money back guarantee by just clicking here.
