The Role of the Nominee in an IVA

Who Is the Nominee?

The Nominee is a licensed Insolvency Practitioner (IP) who acts on your behalf during the initial stages of creating your IVA. They must be authorised and regulated by a recognised professional body - such as the Insolvency Practitioners Association (IPA) or the Institute of Chartered Accountants in England and Wales (ICAEW).

In practice, the Nominee and the Supervisor are almost always the same person or firm. They simply change roles once the IVA is formally approved by creditors.

What Does the Nominee Do?

1. 1Initial assessment: Reviews your income, expenditure, assets, and total debts to determine whether an IVA is viable and appropriate for your situation
2. 2Drafts the IVA proposal: Prepares the formal document setting out the full terms of the arrangement - monthly payment, duration, projected creditor return, equity clause, windfall clause
3. 3Prepares the Statement of Affairs: A detailed legal breakdown of all your assets, liabilities, income, and outgoings
4. 4Produces the Nominee's Report: A formal document submitted to the court expressing their professional opinion that the proposal is fair and has a reasonable prospect of success
5. 5Applies for an Interim Order (if required): Provides temporary court protection from creditor action while the vote is pending
6. 6Convenes the decision procedure: Notifies all creditors, manages the vote, and reports the result to you and the court

The Nominee's Report

The Nominee's Report is a critical document - it gives creditors confidence that an independent licensed professional has reviewed the proposal and considers it viable. Without a positive Nominee's Report, the IVA cannot proceed to a creditor vote.

Nominee Fees

Nominee fees cover all the initial work - assessment, proposal drafting, and running the creditor vote. Typical fees range from £1,500 to £3,000, depending on case complexity and the firm involved.

Crucially, nominee fees are not paid upfront. They are paid from your early monthly IVA contributions, typically over the first 6-12 months of the arrangement.

The Interim Order

In cases where creditors are actively pursuing you - for example, a creditor is about to obtain a CCJ - your Nominee can apply to the court for an Interim Order. This temporarily prevents most creditor action while the IVA proposal is being considered.

Not all IVAs require an Interim Order, but where creditor pressure is acute, it is a powerful tool your Nominee can deploy on your behalf.

After the Nominee's Role Ends

Once creditors approve the IVA, the Nominee's formal role ends and they transition into the Supervisor - who then manages your arrangement for the full term, typically 5-6 years.

This information is for general guidance only and does not constitute financial or legal advice. An IVA is a formal insolvency solution - fees apply and your credit rating will be affected. Seek independent professional advice before making any decisions.