IVA costs and fees
Any consultation or advice we offer is free up to the point of proceeding with a solution after which fees are payable.
All IVA providers charge fees in a similar way and the level of fees are set by the creditors. The are no ‘Free’ IVA companies.
If you see the word ‘free’ used to describe fees charged for a service, then either:-
- It’s one company selling leads to another. So, of course, you are not being charged for this introduction. That’s the ‘free’ part.
- The debt solution is a debt management plan. Here, 100% of the debts are repaid in full to be debt free at the end of the arrangement. An IVA is something else where often a large part of the debt does not need to be repaid.
IVA costs are charged to creditors from money paid into the IVA.
There are two fees charged for our service, and these vary on a case by case basis depending on the level of work required and your creditors’ wishes.
These fees do not influence your monthly payment, but they are subtracted from your payments into the IVA, and they reduce the amount that each creditor is paid.
You do not paid any more towards the IVA than the agreed affordable payments.
Nominee’s Fee
What is it?
This fee is charged concerning the work performed up to the point when the IVA is agreed. It covers the costs of researching your circumstances, valuing your assets, drafting your proposal and arranging and holding your creditors’ meeting.
When is it paid?
This fee is paid from your monthly contributions and is taken at the commencement of your arrangement. This charge is always included in the IVA and is not an additional charge.
How much is it
Your creditors agree the nominee’s fee at the creditors meeting. In most cases this part of the fee is recovered as a percentage of the monthly payments you make.
Supervisor’s Fee
What is it?
The Supervisor’s fee covers the ongoing work of running your IVA, dealing with your creditors, issuing the quarterly dividend payments and producing regular reports for you and your creditors.
When is it paid?
This fee is paid from money you contribute into the IVA at when allowed by your creditors, typically monthly, quarterly or annually. This charge is included in the IVA and is not an additional charge.
How much is it
This fees is set and agreed by your creditors and comes out of your monthly payment – not added to it. It is generally 15% of the overall repayments and is based on your completion of the IVA. This will be clearly stated in your proposal.
Fees Example
In this example a client owing £28,000 client can afford £220 per month to offer to their creditors.
| A breakdown of typical payments and fees on an IVA: | |
|---|---|
| Nominee’s fee | £1,100 |
| Supervisor’s fee | £1,850 |
| Supervisor’s costs * | £70 |
| Typical monthly repayments (x60 months) | £220 |
| Total paid by borrower (including fees mentioned above) | £13,200 |
| Total unsecured debt written off on completion | £14,800 (53%) |
| * average costs that are based on registration and insurance costs | |
Refunds
Once the IVA is up and running, any money paid into it can not be refunded.