We strive to find you the most appropriate debt advice. Our fees depend on your personal circumstances and the debt solution entered into.
There are two types of fees within an IVA: a Nominee’s fee and a Supervisor’s fee.
Before an IVA is presented to creditors, the insolvency practitioner acts as your Nominee and is required to arrange a report and to determine whether the IVA has a realistic chance of success.
The Nominee’s fee covers this initial work, including:
As soon as your IVA is accepted the IP then becomes your Supervisor. The IP will supervise and maintain your IVA throughout its term (usually 5 years).
The Supervisor’s fee covers this ongoing work, including;
Payment of fees
All IVA providers charge fees in line with an agreed scale set by creditors. Fees are taken from the monthly payment you make towards your IVA. No additional fees are taken. Fees depend on the amount you owe and how much you can afford to pay during the IVA. Your IVA proposal will detail the exact amount of fees being charged by the IP.
The following example shows typical fees and payments in an IVA:
|Typical monthly payment||£300|
|Total paid by individual||£18,000|
|Amount owing at the start of the IVA||£31,000|
|Net paid by creditors||£13,304 (43%)|
|Amount written off at the end of the IVA||£17,696 (57%)|
*Example based on a typical client – with unsecured debts of around £31,000, who has no equity in any property and completes a 5-year IVA.
Note: It’s essential that you keep up with your monthly payments to your IVA – if you don’t, your IVA may fail, which means you will be liable for the outstanding balance and any costs already incurred.
IVA’s do offer some flexibility. If you run into any difficulty while your IVA is in progress, you should contact your Supervisor immediately. The IP can request changes to payment plans and call further creditor’s meetings to gain approval of variations to the proposal if needed.
“Initial Setup Charge” This is an amount charged at 49% of your monthly payment to the debt management plan taken from the payment over the initial 6 payments subject to a maximum £200. This will never exceed 50% of your monthly payment. This charge will cover:
“Monthly Management Charge” This is an amount of 23.50% of your monthly payment to the debt management plan and taken from your monthly payment subject to a minimum fee of £39.50 and maximum £100. This is taken from your seventh payment to the debt management plan. This charge is made on distribution to creditors starting from month seven. This will never exceed 50% of your monthly payment and covers: