IVA fees

maxmycardagain · 2 February 2019 at 6:48PM

Any info on IVA fees and how much of the debts get discounted?

are some firms better than others?

sourcrates · 2 February 2019 at 7:05PM

maxmycardagain wrote: »

Any info on IVA fees and how much of the debts get discounted?

are some firms better than others?

Hi,

The real clue is in the name "Individual" voluntery arrangement.

Everyones circumstances are different, so everyones arrangement, although very similar, will be subject to there own personal circumstances, some will pay back all the debt, others will pay less.

As for fee`s every IP has there own fee structure, i think stepchange is one of the cheapest, there fee`s can be viewed on there website.

maxmycardagain · 2 February 2019 at 9:10PM

VA fees: what do they cover?
The costs involved in an IVA are:

A nominee fee
A supervisor fee
Disbursements
The nominee fee is the cost for helping you to put the IVA proposal to your creditors. This is subject to approval by your creditors. Depending on who your creditors are and the amount of your monthly contribution it could be either the first five payments into the IVA, or £2,000.

The Supervisor fee is 15% of any further realisations, to cover the on-going costs of the IVA. So, if you entered into an IVA you'd pay monthly contributions or money from assets to pay the nominee fee at first. Then any remaining money you'd pay towards it would go towards the Supervisor fee.

Sounds expensive TBH

DorisTrousers · 4 February 2019 at 8:24PM

Fees are a bit of a red herring, the real key to an IVA is affordability and sustainability. If it is affordable and sustainable then it should complete.

All fees are taken out of the pot built up over the time of the IVA and are not on top or separate to the monthly payment.

mwarby · 4 February 2019 at 10:36PM

regarding the amount the debt gets discounted - This depends on the amount of debt you have, and the income and expenditure that you agree between you, your IP and the creditors. The monthly payment isn't fixed it can change if your circumstances change, the duration is fixed (unless you own own home, then you may get 1 year extra if you can't release equity)

The pence in pound can range from 1p/£1 or less to 100p/£1. In my case it was around 25p/£ (ie the creditors got 1/4 of original debt)

As others have said unless its likely you will be paying close to 100p/£ the fees don't really factor in to it as the debtor (the creditors will seek to reduce fees as much as they can as it affects their return)

Some people will the big IVA firms some the smaller ones. With smaller firms you may feel you get more individual treatment, I picked one which was active (and friendly) on another forum. Worth bearing in mind that your IVA can be sold on to another firm

Craig1981 · 5 February 2019 at 7:27AM

maxmycardagain wrote: »

VA fees: what do they cover?
The costs involved in an IVA are:

A nominee fee
A supervisor fee
Disbursements
The nominee fee is the cost for helping you to put the IVA proposal to your creditors. This is subject to approval by your creditors. Depending on who your creditors are and the amount of your monthly contribution it could be either the first five payments into the IVA, or £2,000.

The Supervisor fee is 15% of any further realisations, to cover the on-going costs of the IVA. So, if you entered into an IVA you'd pay monthly contributions or money from assets to pay the nominee fee at first. Then any remaining money you'd pay towards it would go towards the Supervisor fee.

Sounds expensive TBH

why post a question and then answer it yourself?? or am i missing something here??

IVA fees

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