WHAT ARE OUR FEES?
IVA - INITIAL FEE
If an IVA is recommended as a suitable solution for you, and you decide to proceed, Vanguard Insolvency Practitioners Limited will conduct a comprehensive review of your personal financial circumstances and submit your case to the Insolvency Practitioner. No fee is charged for this service.
This is a fixed fee for the advice stage and preparation of the Proposal and all other necessary documents including the calling of a meeting of creditors. The fees charged are based on the standard charges of this company and are in line with our competitors. The Nominees fee is paid from the monthly payment agreed in your proposal.
IVA - INSOLVENCY PRACTITIONER'S FEES
There are two types of fees charged by the Insolvency Practitioner. The Insolvency Practitioner during the initial set up period acts in an advisory capacity as your 'Nominee'. Once the IVA is approved the Insolvency Practitioner becomes your 'Supervisor'.
The level of the fee varies according to your individual circumstances and the fees will not be charged until your IVA is approved. The fees will also be agreed with your creditors at the meeting.
Vanguard propose a fixed Supervisor fee, usually £1,750, which is spread over the duration of the IVA. These fees cover all of the work which is done after the proposal is approved for the ongoing supervision of the IVA and payment to your creditors until the IVA is concluded. Creditors may change the way in which we charge our fees. You can refer to the Guide to Fees here for further information. The Supervisor's fee is paid from the monthly payment agreed in your proposal.
KEY POINTS ABOUT OUR FEES
We will explain the fees and expenses we propose to charge and ask you to confirm your agreement to these fees before we charge for any work on your behalf.
IVAs do have flexibility so that you may be allowed a small payment break dependant on your circumstances due to unexpected expenses arising or difficulties at work. The Supervisor will always request proof of any changes.
You should also note that your credit rating will typically be affected for up to 6 years after the IVA has been approved. Your ability to obtain further credit may be affected once your IVA has concluded.
If your IVA is approved, the fees will be paid from the monthly contributions you pay into the IVA. This means that your creditors will bear the costs of the fees. For this reason the fees which we seek to charge may be varied (with your agreement) by your creditors before the IVA is approved.
Once you enter into an IVA it is important to maintain the proposed payments. If you do not keep up with the proposed payments the IVA may fail. During the first few months of the IVA, your payments into the IVA will be used to pay the Nominee's fee and the Supervisor's ongoing fees before any payments are made to your creditors. If the IVA fails you will remain liable for payment of any outstanding balances to your creditors depending on the circumstances. Your debts may not have reduced depending on the progress of your IVA.
The Nominee and Supervisor will charge expenses incurred in connection with the IVA, these may include items such as postage, photocopying, stationery and telephone costs. In addition expenses will be payable to third parties on costs such as bonding, software fees, courier fees and registration of the IVA.
WHAT DO SOME TERMS MEAN?
THE IVA PROPOSAL
This is the document which explains why you are unable to pay your debts and includes full details of your financial position. It explains how much you are proposing to pay towards your debts and the proposed costs of the IVA.
THE MEETING OF YOUR CREDITORS
This is a meeting arranged by the Nominee for your creditors to consider your proposal. The Nominee will prepare a report recommending the proposal for acceptance based on the Nominee having reviewed your proposal and the documents which confirm the contents of the proposal are accurate such as wage slips, creditor statements, house valuation reports etc.
CHANGES/MODIFICATIONS TO THE PROPOSAL
A member of our team will consider with you any changes requested by creditors. These changes may be required in order to secure their acceptance of the proposal and we will advise you whether you should accept the changes or consider an alternative approach to managing your debts. We will not make any changes to your proposals without your agreement.
INCOME CONTRIBUTIONS / MONTHLY PAYMENTS / VOLUNTARY CONTRIBUTIONS / DISPOSABLE INCOME
The Supervisor will check that you are making your payments on time and at the correct amount. Each year the Supervisor will review your income and expenditure to ensure your payments are the appropriate level.
If you are proposing to introduce any assets into the IVA by, for example, a remortgage, the Supervisor will check that this is achieved in accordance with the terms of the IVA.
The Supervisor will check that the claims of your creditors are correct and will then arrange to make regular repayments to your creditors during the course of the IVA.