IVA fees in Chichester

Chichester in West Sussex, like any other city, is crumbling under the weight of debts. For them, before they go into bankruptcy IVA (Individual Voluntary Arrangement) is the most suitable way of repaying the debts with the minimal burden and writing off the rest of the debts and making a new start.

An IVA in Chichester ,as the name suggests is a voluntary process that would be initiated by the debtor to make the repayments to his creditors on a monthly basis with the minimum amount. But since he would not be in a position to repay the entire debt amount, he would go for repaying the maximum amount possible by him. (In IVA one can waive off up to 75% of his debt amount, depending upon his current financial status).

For this he needs to seek the advice and assistance of a Licensed Insolvency Practitioner in Chichester who would evaluate the criteria, circumstances and if found suitable would initiate the proposal for an IVA. He would then put forth the same before the debtor who would agree to it and sign it. The IP would then inform the court accordingly and send copies of this proposal to the various creditors who would be requested to attend a meeting on a fixed date.
On that date, in the presence of all creditors a voting would be held and if majority of the creditors agree to it, the proposal would come into effect. But in case majority voting doesn’t favor the IVA, the meeting would be rescheduled for another date preferably after a two-week’s gap. And in the meantime, the IP would take steps to pacify the creditors, find out the reason for their refusal of the IVA and if required make any amendments in it after due consultation and agreement of all creditors and the debtor.

And then on the IP would turn into a role of a supervisor who would look after the activities of the debtor and ensure that he makes the monthly repayment as agreed upon. This amount would be handed over to the IP and not the creditors. IP would then distribute it among the creditors.
His duty doesn’t end here. He would be making a periodical review of the status and ensure that the debtor is not overburdened due to the change in his circumstances and that necessary steps are taken to bring in an amicable situation or changes.

He would appoint an accounts manager who would be the mid point of communication and would be constantly monitoring the debtor and his financial status. In case of any change in the debtor’s financial status, he would come into aid to provide the necessary guidance and assistance.

And all these processes attract some amount of fees and this may vary from firm to firm and area to area. But the usual norm is that the initial consultation that a debtor makes with for his debts with the debt management advisors, either through phone, online or in person doesn’t attract any fees. Only when there is an initiation for an IVA and information gathering begins for preparing the proposal the fee applicability begins.

This initial IVA Nominee Fee would vary depending upon :
The status of the debtor - If it is an individual it would attract a little less amount and if it is a sole proprietorship firm or a partnership firm it would attract a little more.

The financial implications - If they are complicated the service providers may charge more.
The amount of debt repayment - Though its influence is less but it also has a role to play in fixing the fees.
The number of Creditors – The more the number of creditors the higher the fees is charged.

On a rough estimate the initial Individual Voluntary Arrangement Setup cost would vary somewhere in between £550 to £2500. Normally, they are not charged separately and are calculated and included in the payment schedule that the debtor makes to the creditors. The Nominee retains the first 4-5 months’ installments as his fee. Then on, he begins to repay the creditors their dues. This is usually done in consultation and consent of the creditors.

Once the IVA comes into effect the role of an IP changes to that of a Supervisor. While the Nominee Fees is calculated and charged one time, the Supervisory fees is calculated on a monthly basis and charged accordingly. When the debtor makes the repayment installment, a fixed amount that is pre-calculated, is taken by the IP and the rest he distributes among the creditors. This he charges throughout the entire IVA Period.

But the norm is that the total Supervisory Fee shouldn’t be more than 15% of the entire repayment that has been made.
It is always advisable to talk in detail and make it clear in the initial stage of advice and discussion itself. Also ensure that there are no hidden costs that may pop up at a later stage.

For further assistance contact your Chichester Advice Agencies or any of the helplines:

UKW Ltd, 1 Little London, Chichester, West Sussex, PO19 1PP, Tel: 0845 2634461

Haines Watts Insolvency, Metro Ho Northgate, Chichester, West Sussex, PO19 1BE Tel: 01243 771227

Euro Debt, 36 Park Lane, Selsey, Chichester, West Sussex, PO20 0HE, Tel: 01243 607010

Target Professional Services, 104 High Street, Selsey, Chichester, West Sussex, PO20 0QG, Tel: 01243 601333
­Citizens Advice Bureau, 6 Theatre Ln, CHICHESTER, West Sussex PO19 1SR, United Kingdom, Tel: 0844 477 1171

The UK Insolvency Helpline is a helpline that can reached at 0800 074 6918 or online at http://www.insolvencyhelpline.co.uk/debt_advice_uk/chichester.php

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