Update: IVA has been approved with following modifications:
In the event the arrangement should come to an early conclusion no additional fee may be charged in respect to the early settlement
Recalculation of Dividends
The dividend must be recalculated to include any increases from the modifications or changes to the value of unsecured creditors and the new dividend must be included in the Chairman’s Report
The total cost of the Arrangement will be £3,650 including all fees and disbursements, subject to any limits in relation to minimum levels of distribution. Where the Arrangement is joint or interlocking with another, then the combined cost of both cases shall not exceed £3,650.
In the event of any extension to the IVA, the Supervisor will be entitled to an additional £400 per annum. Pro-rata should be applied where the extension is less than 12 months.
Where additional assets are to be realised, the Supervisor will be entitled to 15% of those further realisations in addition to the total cost. Additional assets can include overtime, bonus, commission, PPI, windfalls, after acquired assets, but excludes any increases in regular income.
No additional fees may be claimed including, but not limited to: adjournments, extensions in lieu of arrears, early completion or termination of the case.
Distribution of Fees:
During months 1, 2 and 3 of the Arrangement the supervisor may draw a fee equivalent to the monthly contribution received from the debtor, which will form part of the total cost allowed. From month 4 of the Arrangement onwards, the supervisor will claim and draw a maximum of 70% of each monthly contribution which will form part of the total cost allowed. A minimum of 30% of the monthly contribution must be distributed to creditors each month from month 4 onwards.
Distributions to Creditors:
Distributions will commence by Month 4 of the Arrangement and will continue to be paid monthly thereafter. Where the Supervisor requires evidence of a claim, he/she shall be authorised to pay dividends on the Statement of Affairs balance.
The fee for calling a variation meeting will be agreed at the point of variation.
The Nominee Fee will be the equivalent of the first 5 monthly payments or £1000.00 whichever is the greatest and drawn as soon as funds permit. The first dividend shall be paid to creditors within 3 months after the Nominee Fee has been settled and subsequently paid quarterly as a minimum thereafter.
No category 2 disbursements are to be charged by the Nominee or Supervisor.
With the exception of the Fees specifically mentioned in Creditor modifications, namely Nominee Fee, Supervisory Fee and Category One Disbursements, no other fees are to be taken from this Voluntary Arrangement. This includes, but is not limited to, Adjournment fees, Closure fees and Failure Fees. The only exception to this is Variation fees which will be agreed at individual Variation meetings
The Supervisor Fee will be equivalent to 15% of all further realisations and drawn proportionally as funds are received.
Variation fees shall not be considered or agreed as part of the arrangement until a variation meeting is called by the IP. Consideration of the fee required to vary the IVA will be made at the creditor meeting based upon the debtor circumstances and work undertaken or required by the IP.
The Nominee Fee will be the equivalent of the first 4 monthly payments or £1000.00 whichever is the greatest and drawn as soon as funds permit. The first dividend shall be paid to creditors within 3 months after the Nominee Fee has been settled and subsequently paid quarterly as a minimum thereafter.
IVA Start - Jan 2021