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Our Services & Fees

IVA Fees and Costs

Here at Creditfix we will only charge fees if an IVA is subsequently approved by your creditors and our fees are only taken from your monthly payments or asset realisations paid into your arrangement. We also offer, as part of your proposal, to start distributing a percentage of the payments made by you from as s month 3 of your arrangement or in some cases earlier, which means the balances owed to your creditors are starting to reduce. In some cases, creditors amend the terms of the IVA so that we are not required to make payments to them until the Nominees fees and disbursements have been repaid.

In an IVA there are three different types of cost charged by the Insolvency Practitioner.

  1. 1. Nominee’s Fee

This fee covers the setting up and preparation of your IVA. This includes assessing your current financial situation and your repayment offer to creditors, issuing the Proposal to your creditors, the administration and facilitation of the creditors’ decision process used to consider the IVA, and any negotiations with creditors during this process.

The Nominee’s fee is generally a minimum of £1,000

  1. 2. Supervisor’s Fees

These fees are charged for the ongoing administration of the IVA which includes collecting and distributing your monthly repayments, dealing with any queries raised by you or your creditors, completing an annual review of your financial circumstances, reporting annually to you and your creditors about the progress of the IVA, and dealing with the closing formalities.

The Supervisor’s fee is generally based on a percentage of any monies paid into the arrangement and ranges from 15 – 20% of the payments made.  In some cases a flat fee may be charged.

  1. 3. Disbursements

These are costs paid by the IP to third party companies for software licences, insurances, and registrations that are required as part of the arrangement. These may also include payments made for the provision of additional services to provide the best return for your creditors.

Typically the disbursements of the arrangement equate to around £1,200 per case.

Below is a typical example of the costs and fees charged in an IVA, where the client has £18,000 worth of unsecured creditors and is making monthly repayments of £150 in the IVA (£9,000 in total over 60 months)*.

The Nominee’s fee : £1,000

The Supervisor’s fee**: £1,200

The Supervisor’s costs: £1,200

Total repaid to unsecured creditors: £5,600

Total written off  by unsecured creditors: £12,400

*This example is for illustration purposes only and actual repayment amounts and debt write off will be dependent on individual financial circumstances.

**15% of further monthly payments once the Nominee’s fee has been satisfied


Debt Arrangement Scheme Fees and Costs

If you enter into a Debt Arrangement Scheme (DAS) Debt Payment Programme through us, there will be fees payable by you and your creditors. There are three types of fee charged in a DAS.

Initial fee

The first two payments you make into your DAS will be taken as an initial fee to cover the work that is involved in setting up your Debt Payment Programme (DPP), this includes preparing your offer and negotiating with your creditors.  If you are introduced to the Money Adviser at Carrington Dean by another debt advice organisation then it is likely your initial fee payments will be paid to that organisation.

Monthly management fee

A monthly management fee of £35 is charged to cover the day to day administration of your DPP, including dealing with any issues that may arise, conducting the annual review of your circumstances, collecting your payments and any other matters that may arise.

Distribution Fee

For each payment distributed to your creditors, they will pay us a fee of 4.5% of the distributed amount.

For each payment that is distributed to your creditors, they pay to us a fee

Below is a typical example of the costs and fees charged in an DAS, where the client has £10,000 worth of unsecured creditors and is making monthly repayments of £150. Based on these levels it would take 89 months to repay their creditors in full together with our costs.

Initial fee (2 x £150): £300

Management fee (87 x £35): £3,045

Distribution Fee paid by your creditors (4.5% of distributions): £450

Total Fees over the life of the DAS: £3,795

Total amount paid by you, including all debts and fees: £13,345