How much does an IVA cost?
We recommend our clients to one of our associated insolvency practitioner, National Debt Help don’t charge any upfront fees for setting up your IVA. Instead once your IVA has been approved, the charges will be taken from your agreed monthly payments.
Including your fees within your monthly payments however, will not affect or increase the amount you pay each month. This is because your creditors agree to a lower repayment to cover these costs. You simply pay the amount agreed in the IVA proposal and your Insolvency Practitioner will distribute the funds to cover the fees and your creditor repayments. If there weren’t any IVA fees you would still pay the same amount each month anyway.
What are the IVA fees and what do they cover?
There are three main charges involved when setting up an IVA that are payable throughout the duration of your repayment plan:
The nominee fee is the cost incurred while assisting you when putting together your proposal to creditors. The Nominee (known as your Insolvency Practitioner) will go through your income and expenditure and help you work out how much you can afford to repay each month. They will also consider your assets, discuss with you whether an IVA is right for you, check you meet the criteria and help you put together a proposal that is likely to be accepted by your creditors. An IVA requires a specialist practitioner to set up the IVA which is why there is a cost. The actual fee largely depends on which practitioner you use and who your creditors are, but it will usually either amount to the value of the first five months of your IVA payments or £1,000.
The Supervisor fee is there to cover the ongoing costs of the IVA and is usually set at 15% of payments into the IVA. This fee is usually charged once the nominee’s fee has been paid. Your Nominee will become your Supervisor and they will be on hand to answer any questions or concerns you may have throughout your IVA. They will also conduct annual reviews to check your income and expenditure is correct and you can still afford your monthly payments.
Disbursements are payments made to third parties involved in your IVA, to cover essentials such as the registration fee that comes with being added to the insolvency register.