IVA's

With an Individual Voluntary Arrangement (IVA), you could be debt free in 60 months. An IVA is a legally binding agreement between you and your creditors that offers an alternative to bankruptcy. IVA's should only be considered by those who are in severe debt.

If you...

  • Have a regular income
  • Have accumulated debts over £10,000
  • Have debts from 2 or more creditors
  • Do not want to go bankrupt
  • Then an IVA could be a solution for your debt problems

An IVA allows you to repay an affordable monthly sum to your creditors over a period of 60 months. Providing you maintain the payments, your creditors will write off the debts you cannot afford.

During the term of the IVA, you are obliged not to take any more credit, and you must comply with the terms or the agreement will fail.

Our initial advice is free, however if you decide to proceed with a plan then fees will apply - Click here for details on our fees

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How do the IVA fees get paid?

As soon as you decide to proceed with an IVA then your payments to creditors cease and contributions towards your IVA start. The amount you pay will be based on what you can afford and reviewed on an annual basis.

The fees we will charge you for putting together and supervising your IVA are included in the monthly payments that we agree between us you can afford to pay into your IVA each month and there are no additional hidden charges.

We will charge fees for our Insolvency Practitioner acting as the nominee and as the supervisor and a separate fee is payable for the Insolvency Practitioner's work in each of these roles. Charges will also be made for additional necessary out of pocket expenses, however the Creditors will determine these fee’s when they approve your IVA.

The nominee fee is a fixed fee depending on the complexity of the IVA but typically is between £1,000 and £2,000. This is for the pre-appointment work in setting up your proposal to your creditors. Once the creditors have voted to approve your IVA. In almost all cases these fees are deducted from your monthly contributions and will not be in addition to them.

The supervisory fees are normally capped by creditors at 15% of realisations and are drawn monthly from the monthly contributions. This is for post-appointment work in maintaining your IVA until the IVA is concluded.

It takes around 6 - 8 weeks to set up an IVA and during this period you will commence your monthly contributions into your IVA. It is likely that by the time the IVA is approved, you will have made one to two contributions which will be used as part payment of the Nominees fees.

(If creditors reject the IVA proposals we do not seek to recover the balance of the Nominee’s fee from you). All fees will be discussed in detail with you prior to any plan being put in place.

*Example

Debt Level £28,000
Monthly Contributions in IVA: £200
Total Payable over 60 Months: £12,000
Nominee’s Fee: £1,000
Supervisor Fee: £1,650
Amount Available To Creditors: £9,350
Therefore potentially 66% of the debt could be written off