What will an IVA cost?
Looking at your options - costs of an IVA
We receive a lot of calls and emails from the public asking; "What will an IVA cost?".
If you propose an IVA via The UK Insolvency Helpline you will not be charged any upfront cost or fees. The average cost of an IVA fee of £1,500 + VAT. The actual person doing the IVA will not be personally invoiced for this. In addition there will be an annual cost called a supervisors cost. This will be around £50 per month on average.
The cost of an IVA will be incorporated into the IVA monthly payments made. The monthly amount paid into the IVA will cover the payments to your creditors as well as the cost and fees for carrying out the IVA. Please note that if the IVA fails at creditors meeting or you change your mind we you will not have to pay any cost or fees for this work whatsoever.
An IVA is set up by a licensed insolvency practitioner. The IP incurs costs when setting up and running an IVA. The cost is related to the time taken to do the following:
- IVA proposal
- Nominee's report
- Posting the IVA proposal to the creditors.
- Holding the IVA creditors meeting
The whole IVA process will be carried out on your behalf by a Licensed Insolvency Practitioner (IP) who is in ultimately in charge of the IVA.
FACT - Who pays for the real cost of an IVA?
The person who pays the cost for an IVA is the person in debt and the creditors. The IVA cost is taken from the money paid and taken from the funds before the money is sent to the creditors.
The reason IVA companies say the IVA is free is because the amount paid is based on affordability. This point is important to note as it means there is no point shopping around for the best IVA deal. The person who pays the IVA cost is the creditors, who accept less money because they pay the IP to manage the IVA on their behalf.
During the period of the IVA the monthly payments will go towards the IVA dividends in IVA client account. The money in the IVA client account will be handed over to the creditors at agreed regular IVA payments times. At the conclusion the of the IVA term all outstanding IVA debts are wiped out. This IVA money is banked in an IVA client account after by the Licenced Insolvency Practitioner who pays the IVA for you.
Will the IVA cost more if my debts are joint with my husband or spouse?
If there are joint debts are two people living together need to apply for an IVA the costs will be slightly higher. The cost will be higher than a single IVA. It is important to do a joint IVA application at both debtors will need protection.
If you would like further advice on what will an IVA cost please contact the IVA team counselors. The team are highly experienced and are able to empathise with the life changing situations an IVA can bring. To access the service either call 0800 074 6918 or log onto www.insolvencyhelpline.co.uk.
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- What is the difference between a secured and unsecured debt? |
- Do creditors have to accept an IVA? |
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- Will the IVA prevent my creditors taking further recovery action? |
- What if my circumstances change whilst in an IVA? |
- Can I cancel the IVA once it is set up? |
- What happens if I just stop paying into the IVA? |
- How long does it take to set up an IVA? |
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- Can a creditor take further recovery action before the IVA is approved? |
- What happens if the IVA is not approved? |
- What Does IVA Stand For? |
- How do I work out how much I can afford to pay per month in to an IVA? |
- I am considering an IVA. How does it work? |
- Do I have to attend IVA meetings, or can this all be done by post? |
- What do creditors expect from an IVA? |
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- Are all creditors forced to accept the IVA majority decision? |
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- What do I do if the IVA is rejected? |
- IVA - Individual Voluntary Arrangement |
- I've buried my head in the sand, now I've got a bankruptcy petition hearing next week. Can I do an IVA at this late stage?
- Will an IVA really write off all of my debts?
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- What if I win the lottery whilst in an IVA? |
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- Will I ever be able to get credit again after an IVA? |
- Is an IVA more expensive than just going bankrupt?
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- What will happen to my car in an IVA? |
- I run a business. What will happen to my business in an IVA?
- Will my partner have to contribute to my IVA?
- My partner and I have joint debts. Can we lump them all together in the same IVA?
- What happens if I'm unable to keep up with the IVA payments?
- What happens at the end of the IVA arrangement?
- Are there any upfront fees with an IVA? |
- Why should I consider an IVA over bankruptcy? |
- What are the advantages of an IVA over a debt management plan? |
- How will an IVA Improve my life? |
- Is there immediate relief if I do an IVA? |
- How much debt do I need to do an IVA? |
- What types of debt can an IVA deal with? |
- Can utility bills be included in an IVA? |
- Will an IVA stop collection calls? |
- Will an IVA freeze my interest rates? |
- Will I have to sell my house if I do an IVA? |
- Will an IVA stop home repossession? |
- How will An IVA affect my home equity? |
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- What assets might an IVA affect? |
- Will an IVA be reflected on my credit file? |
- Can I still use the credit cards I've included in an IVA? (no content) |
- Do I need to include all my creditors in an IVA? |
- Can I apply for credit while I'm in an IVA? |
- Will I need to change bank accounts in an IVA? |
- What will my monthly payment be on an IVA? |
- What if I am unable to keep up with my payments in an IVA? |
- Can my IVA payments go up? |
- Under what circumstances can I reduce my IVA payment? |
- Who will know if I do an IVA? |
- Will my landlord need to know if I do an IVA? |
- I've decided to do an IVA, should i stop paying my creditors now? |
- Will an IVA affect my employment or my ability to get a job? |
- I'm in an IVA and I've lost my job, what can I do? |
- What situations would prevent me from doing an IVA? |
- I've been told I can't do an IVA, what should I do? |
- Can I exit out of my IVA before five years? |
- Under what circumstances can an IVA proposal be rejected? |
- What percentage of IVA's are blocked by creditors? |
- What happens if my IVA fails? |
- What if I can't remortgage as per my IVA proposal? |
- Information on the IVA procedure in the UK |
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