Channel Active Ltd, the operator of IVAAdviceForum.co.uk, refers IVA cases to the recommended insolvency practitioners featured on this website. This website is operated on a commercial basis. We internally operate a team of professionally qualified debt advisers to assist enquirers. We refer to the firms we have selected as they have a reputation for high professional standards and previous clients have provided positive feedback upon their services. The companies are:
- The Debt Advisor
- PJG Recovery
Where a client makes a decision to use one of the recommended insolvency practitioners to propose an IVA, and Channel Active Ltd completes a detailed fact-find for the recommended IP, part of the nominee fee will be paid to Channel Active Ltd to cover the element of the work they have done.
An insolvency practitioner will charge fees for its role as the nominee and supervisor of an IVA. A separate fee is payable for the Insolvency practitioner’s work in each of these roles. The insolvency practitioner will also charge you for various additional expenses (disbursements).
The nominee fee is a fixed fee and covers the Insolvency Practitioner’s work in setting up your proposal to your creditors. This work includes: holding an initial client meeting (by telephone or in person), fact-finding, providing general advice, preparation of a statement of affairs, ingathering supporting documentation, preparing an IVA proposal, presenting the IVA proposal to creditors and holding the meeting of creditors.
The nominee fee charged by our recommended companies is likely to be in the range of £750 to £2500 plus Vat depending upon your circumstances.
Our recommended IVA companies will be paid the nominee fee out of the first payments you make into the IVA and these will not be paid to your creditors. This means your accounts will go into arrears (or further into arrears).
The supervisor’s fee covers work including collecting contributions, agreeing creditor claims, making quarterly distributions to creditors, annual reporting to creditors, dealing with correspondence and queries from creditors and the client, closure of the IVA and making the final dividend payment to creditors.
The calculation of the supervisor’s costs and fees will depend upon the proposal and is therefore subject to your individual circumstances. The supervisor fee charged by our recommended IVA companies is likely to be 15% of your monthly contributions.
It is up to you to fix the basis of the supervisory fees as this will form part of your proposal to creditors. Creditors representing 75 per cent of the debt included in the proposal must approve the proposal, including the fees, before it can be accepted. The level of the supervisor’s fees will also affect the return to your creditors under the arrangement and will therefore affect their decision to accept your proposal.
Warning if your IVA fails: As a significant amount of your payments into an IVA are taken first to meet your insolvency practitioner’s fees, if your IVA fails you will remain liable for the balance of your debt and any insolvency practitioner fees and costs already incurred.
Debt Management Plan Fees
When requested by a site visitor, referral may be made to one of the websites’ featured/recommended debt management plan companies. We have chosen these companies because they are members of trade associations and have met the high standards required to be approved under the Debt Management Protocol. These companies are:
- Bright Oak Ltd
- The Debt Advisor Ltd
Please note that Bright Oak Ltd is connected by common ownership to Channel Active Ltd.
Where a visitor to IVA Advice Forum chooses to proceed with a debt management plan provided by one of our featured companies a referral fee may be paid by that company to Channel Active Ltd.
Where Bright Oak or The Debt Advisor provides a debt management plan the details of their charges will be provided to the client in advance of their commencement with the plan. The charges may include an Initial Fee which will be spread the first six months of the DMP (Bright Oak does not charge an Initial Fee). They will also include a Monthly Fee (for the continued administration work on the plan). The Initial Fee covers services including compiling financial and background statements, providing repayment proposals to creditors, responding to creditor contact by telephone and in writing, and attempting to negotiate arrangements with your creditors on your behalf. The Monthly fee covers ongoing communication with creditors and the client and the distribution to creditors of payments.
Please note that free-to-customer debt management plans are available from other organisations.
The Debt Advisor
Information last updated in August 2017.
The fee charged to cover their services is calculated at 17.5% of the monthly payment, subject to a minimum of £25.00 if the monthly payment is £99.99 or less and a minimum of £30.00 if the monthly payment is £100.00 or more. Their maximum management fee is capped at £100.00.
During the first 6 months of a plan there is an additional charge for the work of setting up the plan, which is calculated as:-
- Up to 5 active creditors £10 per month
- 6 – 10 active Creditors £15 per month
- 11 + creditors £20 per month
Creditors will receive a reduced payment during this time of not less than 52% of the monthly payment.
Information last updated in August 2017
Bright Oak does not charge an additional fee for setting up a debt management plan.
The Monthly Fee with Bright Oak (which covers set-up and management services) will typically be 20% of the monthly payment (subject to a minimum of £37.50 per month and a maximum of £75 per month). A worked example of these fees is available at: https://www.brightoak.co.uk/fees.php
Channel Active Ltd is VAT registered (993346775)
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