Fee Charging Policy for Liberta Financial

Liberta Financial will not make any charge for the initial financial assessment or advice given.

Fees for an IVA are made up of three elements:

Drafting Fees
The fee for preparing all the documentation for and drafting the proposals is £2,000.  If the individual is not able to pay this then we will reduce the “drafting fee” to two monthly payments of his/her surplus income, subject to the maximum of £2,000. These fees are not refundable. However if the proposals for Individual Voluntary Arrangement are rejected by the creditors, Liberta Financial will provide free advice and assistance with the individual’s bankruptcy petition, subject to that being his preferred option.

Nominee’s Fees

These are charged at a standard rate as follows.

£2,400 plus VAT for a single Individual Voluntary Arrangement
£3,000 plus VAT for an interlocking Individual Voluntary Arrangement

Supervisor’s Fees

These are calculated at a rate of 20% of realisations plus VAT (monies paid into the Individual Voluntary Arrangement).

In addition Liberta Financial will be entitled to recover the reasonable expenses of the Nominee and Supervisor.

It is the policy of Liberta Financial to discount the above to ensure that all fees, VAT and the necessary expenses and disbursements of the Nominee and Supervisor are never more than 40% of total realisations.

The fees will be also be discounted if the quantum charged would be detrimental to the likelihood of the creditors approving the proposals for Voluntary Arrangement.

Any discounts are given at the sole discretion of Liberta Financial.

The Nominee and Supervisor’s fees are payable from the monies which an individual has proposed to pay into the Individual Voluntary Arrangement and are not a separate charge to that individual. An individual will not pay more than he or she can afford because of our fees and conversely, if our fees are reduced, he or she will not pay less than he or she can afford.

In most circumstances an individual will only be repaying a proportion of their debt and it is the creditors who will in effect be paying our fees. On the rare occasions where an individual’s circumstances allow him to repay his or her debts in full, he or she will in effect be making additional payments into the Voluntary Arrangement to pay our fees. This will always be discussed with the individual prior to the proposals for Voluntary Arrangement being drafted and where appropriate the fees will be discounted to ensure that the individual never pays more into the Voluntary Arrangement than that which would be payable if he or she had taken a debt consolidation loan over a five year period at 10% apr.

Fees for Assistance with a Bankruptcy Petition

The fee for preparing a debtor’s petition and statement of affairs is £500.00.