If you choose to enter into an IVA, there will be fees involved. The level of any fees taken will be decided by your creditors and any genuine costs in relation to your IVA may also be claimed back.
Individual Voluntary Arrangement fees.
You will only be charged a fee if your Individual Voluntary Arrangement is accepted.
All cost are built in to your monthly payment.
Once your IVA has been accepted, the fees you pay will be:
- A nominee’s fees
- Supervisor’s fees
- Costs and expenses
A licensed insolvency practitioner must act as nominee on an IVA. This fee covers the professional costs and charges involved in arranging your IVA, including:
- preparing your IVA proposal – which sets out the proposed terms of your IVA and provides your lenders with a detailed snapshot of your finances, and
Arranging the creditors meeting. It will typically be between £1,000 and £3,000 and is often capped to an amount equal to your first 4-6 months’ IVA payments.
The Nominee’s fee will be paid first before any payments are made to your Creditors.
The Supervisor’s fees cover the ongoing work involved in running your IVA and is calculated as a percentage of “realisations”: typically it is charged at 15-18% of any money received by the Supervisor and distributed to your lenders, such as your monthly contributions, any assets (e.g. the equity in your property, successful PPI mis-selling claims) and windfalls (e.g. an inheritance) that you receive during the term of your IVA.
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.
There might also be costs incurred directly in connection with the running of your IVA, such as postage and insurance, which your IVA provider is entitled to claim back.
How much you will pay in fees will be clearly set out in your IVA proposal. They must be approved by your lenders and may be changed before the proposal is accepted.
The average fees paid by our clients are currently:
Nominee’s fees: £1,209
Supervisor’s fees: £1,597
Supervisor’s costs: £900
Money Support Group do not directly provide solutions, we offer a no obligation referrals to trusted providers of appropriate solutions and receive a fee from these providers if customers agree to these solutions. All our insolvency practitioners that we work with are authorised to act as insolvency practitioners in the UK, by the Insolvency practitioner’s association.