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IVA Fees
CLICK TO APPLY FOR HELPThe Debt Advisor provides help and practical solutions to help individuals and businesses that are in debt or have cash flow problems.
The first fee is the fee charged by the Insolvency Practitioner for setting up the IVA – known as the ‘Nominee’s fee’ and the second fee is the fee charged by the Insolvency Practitioner for administering the IVA typically for a period of 5 years. This fee is known as the ‘Supervisor’s fee’. An example of the fees and how they are charged is set out below. The fees will be fully explained to you before you proceed with your IVA and they will also be disclosed in your IVA proposal which is sent to your creditors.
The important point to note about the fees and costs of an IVA is that the costs are deducted from your agreed affordable monthly payments. In the example below, you will see that no fees or costs will be payable by you in addition to your agreed monthly IVA contributions.
Here are 2 examples (for illustration only)……
Lee
- Lee owed £27,000 (cards and loans)
- He agreed to pay 60 payments of £100 over 5 years (£6,000 which was 22.2% of the original)
- Nominee’s fee: £1,900
- Supervisor’s fee: £1,750
- Lee paid creditors £2,350 over 5 years
- Creditors received 8.7% of the amount they were owed and wrote off 92.3%
Jakob
- Jakob owed £12,500 (loans & utility debts)
- He agreed to pay 60 payments of £80 over 5 years (£4,800 which was 38.4% of the original)
- Nominee’s fee: £1,900
- Supervisor’s fee: £1,750
- Jokob paid creditors £1,150 over 5 years
- Creditors received 9.6% of the amount they were owed and wrote off 91.4%
You will notice that the Nominee’s fee and Supervisor’s fee is the same in each case. This is because the major lenders and banks in the UK have agreed to pay these fees for IVAs which they approve.
The debt write-off amount for each customer differs depending upon their individual financial circumstances and is subject to the approval by their creditors. An IVA may not be suitable in all circumstances. Fees may apply but the initial assessment is free. Writing off debt with an IVA will affect your credit rating (see our FAQ page).
If your IVA is terminated because e.g. you have failed to pay all the agreed IVA payments, it is likely that the majority of the contributions you have paid will have been used to pay the costs and expenses of your IVA. This will mean that the amounts you owe to your creditors will have reduced by very little. Your creditors will again be able to claim the amounts you owe to them together with interest and charges.
The Debt Advisor Ltd is regulated by The Financial Conduct Authority. This means we are able to offer debt advice and deliver both formal and informal solutions. Debt solutions need to be carefully considered and you must take independent debt advice. We hope that the information and debt advice on this site will help inform you.
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