Unsecured debts only. An IVA should only be considered in extreme circumstances as failure to adhere could result in bankruptcy. Terms & Conditions apply.
A record of your IVA will be retained by credit reference agencies for a period of six years. Your credit rating will be impaired and it may be harder to obtain credit in the medium to long term.
Initial debt advice is free but fees are payable if a debt solution is agreed and provided.
An estimate of the costs involved in the arrangement will be included within your proposal; however these fees are subject to change at the creditors meeting. Once the creditors have approved your IVA the basis of our fees will be set and an up to date schedule of fees will be issued to you.
Chargeable fees are made up of Nominee's fees which relate to the assistance given to prepare your proposal and will be taken from the first payments made into your arrangement, and Supervisor's fees which relate to the ongoing monitoring, supervision and administration of your IVA and which will be charged on a monthly basis and deducted from the contributions you pay into the arrangement.
No further fees are payable by you.
The fees involved in an IVA are the Nominee's fee and Supervisor's fees.
These fees are charged by us to your creditors. They pay us, from money you paid into your IVA. You are not required to pay fee directly nor make any payments over and above the affordable monthly payment as agreed with your IVA advisor.
The Nominee's fee covers the set-up costs of an IVA. This includes tasks such as:
Initial monthly payments go towards paying the Nominee's fee.
The Supervisor's fee is a small percentage of each monthly payment made (once the nominee's fee has been paid). This covers the ongoing service from your IP (Insolvency Practitioner) and our client support team.
Client support takes care of the day-to-day running of your IVA, and deals with any issues that may arise. They'll also be your first point of contact for issues regarding your IVA.
Your IP is the person who helps you with your IVA proposal and any other necessary legal work. If at any point your circumstances change and you need to adjust your IVA accordingly, your IP will take care of this.
Fees vary with the complexity of a case. This is an example for illustrative purposes, based on a client, with £31,000 of unsecured debts on an IVA lasting 5 years and without equity in a property.
Nominee's fee (£1,500 + vat) - £1,762
Supervisor's fees* - £2,862
Supervisor's costs** - £400
Typical monthly repayments (60 months) - £300
Total paid by borrower - £18,000
Total unsecured debt written off on completion - £18,024 (58%)
*15% of realisations less nominees fee.
** Bond Fee £50, DTI Fee £15, plus other case dependant costs.
The only way to truly know if you qualify for an IVA is to get professional advice.
You can withdraw your proposal for a voluntary arrangement at any point up and including the day of your creditor's meeting. Once the arrangement has been approved at the creditors' meeting and you have agreed to be bound by its terms, you have entered formal insolvency proceedings and no cooling off period applies.