There is no upfront cost or fee. If you want to talk about an IVA, the initial consultation is free and comes with no obligation.

However, there are two separate fees payable in an IVA. Both of these fees are paid as part of the Arrangement and are included in the monthly contributions made to the IVA. These fees do not affect the total amount payable, but instead, reduce the final dividend that each creditor receives from the IVA.

The nominee’s fee is a fee charged for the work performed up to the point when the IVA is agreed upon. It is reclaimed from payments into the IVA before any dividend is paid to creditors, it could either be the first five payments into the IVA or £2,000 depending on who your creditors are.

The supervisor’s fee is an ongoing fee for the work performed during an IVA. It is reclaimed from payments into the IVA at regular intervals, as agreed with voting creditors. This could be quarterly or annually depending on the rules stipulated in the individual’s proposal.

Disbursements usually cover expenses your IP pay to third-party companies for software licenses, insurances, or any regulation that is needed. They could also include the cost of additional services hired to offer the best return to creditors.

Please find an example of how the IVA works & what are the associated fees below:

Monthly Payment – £120 | Number of Monthly Payments – 60 | Total Paid by You – £7200 | Nominee’s Fees – £1200 | Supervisor’s Fees – £1000

Total Paid to the Creditors – £5000 | Total Debt Level Included – £15000

Total Debts Written Off – £10000 (70.95% of the total Debts).

Note: Your monthly IVA payments may be different from the example provided, it will be based on your circumstances. All the fees will be clearly explained to you in writing,