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.

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 actual Nominee’s Fee at the creditors meeting. Still, if an IVA is not accepted for any reason, it is assumed that the value suggested in your proposal is an accurate costing of work performed.

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
Your creditors agree to the actual Supervisor’s Fee at the creditors meeting. Our proposed Supervisor’s fee will be clearly stated in your proposal.

Refunds

Once the IVA is up and running, any money paid into it can not be refunded.

“Free” and “Charity” Debt Help Companies

The word ‘free’ is often used in a misleading way within marketing and particularly within debt resolution marketing.

You may have seen websites claiming “our service is free”. Well, that is generally because the site is not of a solution provider, but what is called a lead generator or an introducer. It’s an introduction service, and they make their money selling leads. So, of course, they don’t charge ‘you’ for this. This should be made evident from the website, but this disclaimer, if it’s there at all, is usually buried in the privacy policy.

Debt management companies

We provide IVAs. Debt management or debt management plans (DMPs) are something else.  An IVA is an insolvency procedure where you typically repay some debt, and some are written off.  Debt management is not an insolvency procedure, so 100% of the debt is repaid. See IVA and debt management comparison for more details.

There are two types of debt management (DMP) companies:

1) Fee charging

The DMP providers keep some of the money paid into the plan as fees and distribute the rest to creditors. So you, the customer pays the costs.

1) Free to customer

The DMP providers get paid by the creditors from the money they collected by the DMP. In theory, these payments from creditors are ‘voluntary’ hence they can say they are a charity and often focus on this with their branding and marketing. The majority of the significant lenders participate in this funding. Often these free to customer DMP providers have an insolvency department offering IVAs,  charging fees in the same way we do. There are no free IVAs.

Please call 0800 014 9675 or a contact us if you have any questions or require some assistance with your debts.