Fair fees for Individual Voluntary Arrangements

The banks should be grateful if a debtor proposes an IVA offering a significantly higher return than bankruptcy. If they are not prepared to pay a fair fee for IVAs then they can get lost. We will advise clients to go bankrupt and guide them through it, ensuring the banks get nothing.

How does the fee structure work for IVA's?  I am based in Scotland and the fees for Trust Deeds are pretty much accepted at a set level per case, although creditors who are choosing to voice there opinions are starting to squeeze the fees downwards.

I think that there is no question that the banks want more and more to be done for less and less fee.

The problem is that debtors are desperate, so that if the IVA is rejected they still will rarely go bankrupt. They just struggle along for a few more months, during which time the most aggressive creditors do best. Evenutally, if the debtor is 'lucky' they may face a creditor's petition which will bring it all to an end for them.

The creditors have no interest in finding the best solution for anyone except themselves - and seem to have no acceptance that their lending policies may have been at fault in the first place. To expect anything else these days is, in my opinion, niaive.