You are provided a cooling off period of fourteen days from the date the agreement was deemed to commence, during which you may cancel our agreement. Should you give notice to us that you would like a refund of a payment, or payments, (being other than the initial fee) then where no distributions have, at that time, been made by us, or are in the process or course of being made by us, in respect of that payment or payments this will be made in full (i.e. without deduction of our fee of 17.5%).
A record of your agreement with us will be held on your credit file for up to six years, and your ability to obtain credit in future may be affected.
The Insolvency Service has produced a guide: In Debt? Dealing With Your Creditors.
If an IVA is not maintained it could lead to bankruptcy.
Fees related to Debt Management Plans are in two parts;
Your Initial fee will cover the work that goes into setting up a debt management plan. That involves:
Because this fee does not go towards your debts, you will go further into arrears for the two months. But do not worry - you will start repaying your unsecured debts with your next payment.
In other words, your accounts will go into arrears - or further into arrears - because your first two monthly payments will not go to your creditors.
The monthly management fee covers the ongoing work involved in keeping your debt management plan running smoothly. This includes:
It also pays for your PFMs services - all the way through, they will be there to answer your questions and help you solve any problems you may run into while your plan is in progress.
If it looks like you cannot afford your monthly payments any more, we can renegotiate with your creditors - they may agree to accept smaller payments if it looks like the best way of bringing your debt management plan to a successful conclusion.
To see an example of a Debt Management Plan, click the tab above.
Fees incurred for Individual Voluntary Arrangements are variable dependent upon the monthly contribution to the arrangement and the agreement that is reached with your creditors. Fees are made up of Nominees fees relating to assistance given to prepare your proposal and Supervisor fees which relate to the ongoing monitoring of your IVA. Fees are already included as part of your monthly contribution. The level of fees and the method of payment are both agreed by your creditors at the outset of the arrangement.
This is a fixed fee that will cover the work that goes into setting up your IVA:
Your first few monthly payments (depending on what you have agreed with your creditors) will go towards paying the nominees fee before your creditors receive any money - so your accounts will go into arrears - or further into arrears - because your first two monthly payments will not go to your creditors.
The supervisors fees will cover the ongoing supervision and maintenance of your IVA all the way through - so for five years, with a typical IVA. That means:
After the nominees fee has been paid, a percentage of each monthly payment will be taken as supervisors fees, as detailed in your IVA proposal.
Note: Keeping up with your monthly payments in an IVA is vital - if you fail to, your IVA may fail, leaving you liable for the remaining balance and any costs already incurred. Having said that, IVAs do provide an element of flexibility: you may, for example, be allowed to take a small break from your payments if you come up against unexpected costs (such as essential home repairs).
Our IVAs are provided by our sister company, The Debt People who are a licensed Insolvency Practitioners.
To see an example of an IVA, click the tab above.
Throughout your Trust Deed (which will probably last for 3 years), you will pay a flat fee every month.
Your monthly payments will be stored in a creditors pot - once the flat fee has been deducted from this pot, your creditors will receive their payment. (The timing of this deduction will vary from case to case.)
The fee will cover the costs involved in setting up your Trust Deed. It will also pay for the ongoing supervision and maintenance of your Trust Deed right up to the day it finishes:
Note: It is essential that you make your monthly payments to your Trust Deed, or it could fail - in which case you would be liable for the remaining balance and any costs already incurred.
However, you may be permitted a small break from your payments if, for example, you are facing short-term problems (such as dealing with unexpected costs) that significantly reduce your disposable income.
Our Trust Deeds are provided by Gregory Pennington Ltd.
To see an example of a Trust Deed, click the tab above.
Mary is a single mother from Manchester. She works 16 hours a week in a shop and claims the benefits she’s entitled to.
Mary owed money to 3 lenders for credit cards, see the figures below:
Her total debt was £7,570 and she was trying to repay £227 per month. Unfortunately, this was more than she could afford, meaning she regularly encountered late payment charges. She also had to rely on her credit cards each month to subsidise her income, so she was going further into the red.
After contacting us, her income and expenditure was assessed and her disposable income (after essential expenditure and priority debts) was £150. We were also able to freeze the interest and charges on her accounts, so the money she paid to us (minus fees) was paid straight off her balances. The payments were paid on a pro rata basis, with thelargest balance receiving the greater share of the payment –
At this point, we must point out again that an IVA is very much an individual arrangement and that no two are the same. This is just an example aimed to help you understand how they work.
There are two kinds of fee involved in an IVA - the Nominees fee and the Supervisors fees. Here is an example of the fees and payments on a typical clients IVA:
| Typical monthly repayments (60 months) | £300 |
| Total paid by borrower (including fees) | £18,000 |
| Total unsecured debt written off on completion | £13,000 (42%) |
| Nominees fee | £1,704 |
| Supervisors fees | £3149 |
| Supervisors costs | £290 |
Example based on a typical client, with approx. £31,000 of unsecured debts who completes a 5-year IVA and has no equity in any property.
As a formal insolvency procedure, an IVA is a legally binding agreement with your unsecured creditors and requires an Insolvency Practitioner (known as an IP).
An IP is a qualified professional with the experience to handle insolvency cases. They will be responsible for ensuring your IVA is fair to both you and your creditors all the way through.
Throughout your Trust Deed (which will probably last for 3 years), you will pay a flat fee every month. Here is an example of the fees and payments on a typical clients Trust Deed:
| Total repaid by individual | £7,200 |
| Total unsecured debt written off at completion | £15,800 (69%) |
| Typical monthly payments (x36 months) | £200 |
| Fee element included in monthly payment (x36 months) | £110 |
| Trustee disbursements | £150 |
Example based on a typical Trust Deed client, with approx. £23,000 of unsecured debts who completes a 3-year Trust Deed and has no equity in any property. Fees shown do not include VAT.
The fee will be taken out of your monthly payments - it will not affect the amount you actually pay every month.Calls from a BT land line are free, however, calls from non BT land lines may vary. Calls from mobiles will be charged, as such it may be cheaper to dial 0161 927 3285 from a mobile phone.
To arrange a FREE callback, please complete the form on the right of the page below the navigation.