IVA Fees or Cost

  • IVA fees are pre agreed with clients creditors and comply with the IVA protocol accepted amongst Lenders, Insolvency Practitioners and Regulatory Bodies.
  • Every UK industry Individual Voluntary Arrangement provider follows the Protocol including the free to client debt charities.

Our third party IVA provider will not ask you for fees upfront or ask you to make additional fee payments. Our fee is paid by our 3rd party IVA provider and is agreed as a packaging fee for the preliminary case work we undertake on your file. During your IVA you are expected to make one regular monthly payment into the IVA, fees for the IVA are included within your monthly payment.

Two types of fees are charged during an IVA, the nominee's fee and the supervisor's fee.

A nominee's fee is the set up fee for an IVA with agreements put in place between the client and the respective creditors.

The supervisor's fee is an ongoing fee whilst the IVA is in place that covers the management of the IVA until completion.

IVA fees are not pre determined or set in stone as they differ from case to case and are unique in each situation.

We have shown an example of a typical IVA showing total personal debt balances and total amount repaid whilst the IVA is in place, this includes the fees for the IVA.

You may be wondering what the fees you pay during the IVA are for;
  • First of all we have to agree a personal financial statement or statement of facts with you.
  • Then we draft and prepare your legally binding IVA creditor proposal for the Meeting of Creditors (MOC).
  • The creditors meeting is then held and your case is presented. If your IVA is not approved you do not pay any fees!
  • Dedicated customer care team on hand to help with any queries / issues you may have at any time throughout your IVA.
  • Regular reviews are undertaken on an annual basis to make sure your case is proceeding as originally anticipated.
  • We are also responsible for distributing the funds you pay monthly to your respective creditors.
  • If your circumstances do change we have to make changes to your IVA and work along side your creditors annually to make sure the IVA completes as anticipated originally.

The following example is of a typical IVA.
  • Mr Arkwright had a total debt level of £47,800.
  • Mr Arkwright was paying minimum payments totalling £637 per month.
  • After negotiating the Individual Voluntary Arrangement for Mr Arkwright we worked out he could afford to pay £276 per month towards his IVA.
  • Whilst servicing the IVA repayments Mr Arkwright paid back £16,560 in total amounting to a total repayment of 35% of his total debt and the 65% that remained unpaid was written off by his creditors. The £16,560 he repaid included all his IVA fees required. In Mr Arkwrights case the fees charged worked out at £3,000 over the 60 months that the IVA was in place.

The regular £276 monthly repayment were the only payments Mr Arkwright made towards his IVA.

Please note;

  • Upfront fees will never be asked for!
  • All fees are included with the regular monthly payment that you agree you can afford.
  • Nominee's fees are usually taken during the first 5-6 months of the IVA. Supervisors fees are usually taken over the 60 month period.
  • You will without doubt be told what your IVA fees total before you enter into the IVA.

Debt Management
Insolvency or IVA
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