How much does it cost to set up an IVA?

Determined_2b_Debt_Free

I've seen the figure of £4k, is that pretty standard?

Thanks.

Nargleblast

I have heard that charges are more or less the same wherever you go, but do not go to a company that wants to charge you any kind of setting up fees, because all they will do is introduce you to a real IVA provider and pocket the fee for acting as an agent! You do not pay anything out until after the agreement is signed and you make your first monthly payment as agreed between you and the company.

Determined_2b_Debt_Free

Thank you!

Charco_2

Fees vary.

Most companies I would suggest are finding that the average of their fees would be coming in at around £4k - which isn't a lot really for five years work!

I dont really understand the obsession with fees though (ok, i do get it to a certain extent but...)

The fees are agreed between your IVA supplier and your Creditors. You will agree to pay as much as you can afford to your IVA for five years. Your IPs fees come out of that so it's not like there is an extra bill to be paid.

As said above though, don't go with a company that charges up front fees!

althas

Well to actually SET UP an IVA. If anyone askes for a fee for that then say good bye cowboy robber, and go somewhere else

The administration costs of an IVA, like the agreement, will vary from IP to IP, but £4k sounds an average kind of figure. But as Charco has said, the fees are all part of the IVA agreement and your IP will settle this with your creditors. You will not have an extra bit on your payment to cover the fees. You pay the amount you can afford. The premiums paid to your creditors are "top sliced" to cover the fees

So don't worry about that bit. Concentrate on getting a GOOD IP. Have a look on www.iva.com for a lot of helpful reviews from people who use the IP's. Shop around a couple to get a "feel" for them (after all you are going to be dealing with these people regulary for upto 6 years) and take it from there

Good Luck

Determined_2b_Debt_Free

Thanks for your replies. It isn't for me, it's for a relative but I was a bit concerned they would have to find the 4K to start with (which would be a bit mad considering the situation).

You've all helped to clarify it.

Thanks again :-)