Individual Voluntary Agreement Costs

Individual Voluntary Agreement Costs

A look at individual voluntary agreement costs is surely going to throw up some interesting facts. The first part of individual voluntary agreement costs relates to the fees charged for setting up and then running your individual voluntary agreement. These fees include the nominee fees, supervisor fees and initial administration fees.

Nominee's fees

These fees form part of the individual voluntary agreement costs and cover the preparatory job that needs to be done for making the individual voluntary agreement proposal. The fees charged is not fixed and varies from individual to individual but is normally calculated as five monthly individual voluntary agreement contributions.

Supervisor's Fee

These fees also add to the overall individual voluntary agreement costs and cover costs of getting an Insolvency Practitioner to do the work over the entire life of the individual voluntary agreement. The Insolvency Practitioner must ensure that the terms of the agreement are followed by each party. These individual voluntary agreement costs are calculated at about fifteen percent of the amount that has been recovered.

Preparatory work

Preparing an individual voluntary agreement requires a lot of effort and this will be reflected in the individual voluntary agreement costs. There are many things that have to be done at the initial stages including preparation of the individual voluntary agreement proposal and in addition it is also necessary to gather together all the required information. Then, there is need to prepare and file the nominee's report and the proposal must also be sent to the creditors. Finally, a creditor's meeting has to be called. All these steps need to be taken and will add to the individual voluntary agreement costs.

The individual voluntary agreement must also be approved by a Court and will be controlled by a supervisor. Therefore, individual voluntary agreement costs of administrating the individual voluntary agreement have to be taken into account. Fortunately, these individual voluntary agreement costs are not as high as is the case when filing for bankruptcy and so creditors get a better return when they agree to an individual voluntary agreement.

People that are in danger of becoming insolvent and who are thinking about entering into an individual voluntary agreement will naturally worry about the individual voluntary agreement costs. each individual voluntary agreement has its associated fees and there will not be any exceptions to this rule. These fees will be charged by an Insolvency Practitioner who is the person that is going to take on the responsibility of setting up and then administrating your individual voluntary agreement.

An Insolvency Practitioner, in order to provide support has to rely on an experienced team of support staff and they must provide what is known as Insolvency Practices. These Insolvency Practices are run like a commercial venture which means that you cannot expect to get free service from an Insolvency Practitioner. This obviously means that the Insolvency Practitioner is going to charge you their fees which will only add to the individual voluntary agreement costs.

There is therefore nothing like a fee free individual voluntary agreement. It does not matter which Insolvency Practices firm you choose to work with. They will also charge their fees which are going to be reflected in the individual voluntary agreement costs.

Back to Top