How Much Do IVAs Cost?
If you’re struggling to repay your debt, an Individual Voluntary Arrangement (IVA) might be a suitable option for you. An IVA is an agreement between you and your creditors to repay your debts over a set period, typically five years. However, there are associated fees. So, what are these fees and how much does an IVA cost?
What Fees Are Involved?
At MoneyPlus, we don’t ask for any upfront fees. Instead, these fees are covered by your monthly contributions. We will inform you of the fees involved and how they’re calculated before you commit to an IVA. Always review your IVA Proposal and Chair report for the final fees agreed upon by your creditors.
There are three types of fees associated with an IVA:
- Nominee’s Fee
- The Nominee’s fee covers the process of establishing the IVA agreement between you and your creditors. This includes preparing your IVA Proposal, detailing your finances, and organizing the creditor meeting. We typically propose a fee of £2,100, although your creditors may sometimes reduce this amount.
- Supervisor’s Fee
- The Supervisor’s fee covers the ongoing management and administration of your IVA, including your annual review. The fee is usually £2,100, but in some cases, creditors may reduce it. This fee will be detailed in your IVA Proposal. Additionally, we may apply a 15% charge on any other asset realizations included in your IVA, such as windfalls.
- Disbursement Costs
- These are miscellaneous costs necessary to maintain your IVA, including expenses paid to third parties, insurance, and a registration fee for registering your IVA with the Insolvency Service. Legal advice, property valuations, and land registry fees, if applicable, could also be charged as disbursements.
Do I Still Pay Fees if My IVA Fails?
If your IVA fails, you are generally responsible for the fees accrued up until the point of failure. The specific terms, including any fees due if the IVA fails, will be explained in your IVA Proposal.
Get IVA Help and Advice
For more information on managing your debt and receiving free debt advice, visit MoneyHelper or explore various options for paying off your debt by contacting IVA Company.