The attached guide explains how fees are fixed in Voluntary Arrangements

Statements of Insolvency Practice are issued to members of R3 and give guidance as to the best practice to be adopted by authorised insolvency practitioners having regard to the relevant legislation. They are adopted by each of the Recognised Professional Bodies for promulgation as part of each RPB's regulatory regime and are issued to insolvency practitioners authorised by the Secrtetary of State for Trace and Industry.

The Purpose

The R3 Standard Conditions were first published in 2002 and revised in November 2004 and comprise some 83 paragraphs, most of which are divided into sub-paragraphs, and extend to some 30 pages.

Health Warning

The debtor’s attention is specifically drawn to Parts IV, V, VIII, XI and XII of the Standard Conditions, however, it should not be thought that the debtor may not be affected personally by other provisions.

Before entering into an Individual Voluntary Arrangement it is vital that the debtor reads and understands the R3 publication “Is a Voluntary Arrangement right for Me?” (this is reproduced below), fully understands the terms of his Proposal and has had every opportunity of discussing the Proposal and the Standard Conditions with the intended Nominee.

The Reason

With bankruptcy there are contained in the Insolvency Rules, as amended, in excess of 270 rules dealing with the administration of a bankruptcy. No such detailed rules exist for Individual Voluntary Arrangements so the purpose of the Standard Conditions is to provide a framework of rules to cover the most important situations and problem areas that may arise during the life of an Arrangement.

An Individual Voluntary Arrangement (IVA) is an alternative to bankruptcy. An IVA is a legally binding arrangement and anyone thinking of entering into an IVA may find this guide published by R3 useful reading. The most recent version was issued in June 2008.