Fees

IVA Fees and Costs

IVA costs are charged for the preparation of your proposal and the administration of the arrangement for the full term (usually 5 years) these costs are charged from the monthly contributions you make into the IVA and are not in addition. Costs will only be recovered on approval of your arrangement and once you commence making payments to it.

The fees for preparation of the proposal to creditors and calling the meeting for creditors to vote on its approval are called nominees fees, the fees for running the arrangement once approved are called supervisors fees. There are also some expenses incurred in the running of the arrangement such as the registration fee and the statutory insurance that needs to be taken by law, these are called disbursements. For our arrangements, the total of all of these is £3,650 although this may be adjusted by creditors when they vote on whether to accept. No matter what the end total of costs come to, you can be rest assured that these will be taken from the monthly payment we agree with you.

Will an IVA affect my credit rating?

Your IVA will be registered and will show on your credit file for six years from the date it is approved and for up to 12 months after your IVA has concluded. During this time, you’re likely to find it difficult to obtain credit. You must also inform your insolvency supervisor and get written permission if you want to take out more than £500 worth of credit during your IVA. Details of individual voluntary arrangements are listed on a public register called the Individual Insolvency Register. It’s unlikely that anyone would come across this information, but it’s something which is available to those who know where to look for it.

The effect of your IVA on your credit rating will also depend to some extent on what your credit rating was like before you commenced your IVA.