IVA Fees

What fees are involved?

Our fee is made up of an initial fee (your first monthly payment) and nothing thereafter. Fees will then be paid directly to your appointed Insolvency Practitioner. These are split into 2 categories;

1. The nominee’s fee, and
2. The Supervisors fee.

We have illustrated the payments and fees on a typical customers IVA.

A breakdown of typical payments and fees on an IVA;

Typical initial fee	£300
Nominees fee	£1,704
Supervisors fee	£3,149
Typical monthly repayments (x60 months)	£300
Total paid back (including fees illustrated above)	£18,300
Total of unsecured debt written off	£12,700 (41%)

The example illustrated above is based on a typical client with unsecured debt totalling approximately £31,000 who completes an IVA lasting 5 years (60 months) and has no equity in a home. Fees shown are inclusive of VAT where applicable. For further advice please speak to an expert debt advisor on 0800 092 0455.

Nominee's fee

The nominee's fee is a fixed fee that covers the cost of setting up your IVA - which includes:

1. Drawing up your IVA proposal, a document which lays down the proposed terms of your IVA (what you would pay, what each creditor would receive, etc.)
2. Organising the creditors meeting, at which point your creditors may request changes to those terms.
3. Helping you decide if those changes (if there are any) are reasonable, or if you'd be better off considering a different approach to tackling your debts.

Depending on the terms of your IVA proposal, your first few monthly payments will go towards paying the Nominee's fee, and will not go to your creditors.

Supervisor's fees

This covers the ongoing maintenance and supervision of your IVA right up to the day it finishes (typically this would be 5 years).

Your Insolvency Administrator will be there to keep your IVA running smoothly and deal with any day-to-day issues that arise. Your Insolvency Practitioner will carry out a review of your IVA on a regular basis and handle any more substantial issues - if, for example, your financial situation deteriorates it is likely you will need them to arrange an IVA variation (a change to your IVA terms, based on changes to your personal circumstances).

The supervisor's fees will take up a percentage of each monthly payment you make in your IVA (according to the terms laid down in your IVA proposal at the creditor’s meeting). These fees will not be deducted until the nominee's fee has been paid.

Note: It is very important to realise that you must keep up your monthly payments in accordance with your IVA proposal (although you may be allowed to take a short 'break' from payments if essential – for example if you are faced with unexpected costs like car repairs). If you do not maintain your side of the agreement, your IVA may fail, and this could leave you financially worse off, as you would be responsible for the remaining balance and any costs already incurred.

Call us FREE Today 0800 092 0455 to get professional and confidential debt advice. Let us offer you the best debt solutions available for your personal situation.