MA Finance

Fees with an IVA

There are no upfront fees and the following fees will only be charged if your IVA is approved:

  • The Nominee’s fee – The Nominee’s fee proposed to creditors, are negotiated between your creditors and the insolvency practitioners.
  • The Supervisor’s fee – The Supervisor’s fee is a monthly fee which covers the specialist work carried out to administer your IVA for the duration of the IVA period (typically a 5 year period). The fee again is negotiated between your creditors and the insolvency practitioners. In addition to this, your Supervisor will charge a fee of 15% of Additional Realisations that are not monthly contributions.
  • Both fees will be incorporated into your monthly payment. All fees will be explained to you before you enter any agreement.

Advantages of an Individual Voluntary Arrangement.

  • An alternative to bankruptcy.
  • Guarantees all interest and charges are completely frozen.
  • Protection from creditors taking any legal action against you.
  • Debt s are paid generally over a period of 5 years but could be 6 years if you are a homeowner.
  • All outstanding debt at the end of the IVA will be completely written off.

Disadvantages of an Individual Voluntary Arrangement

  • An Individual Voluntary Arrangement may have a negative effect on your credit rating for up to 6 years.
  • If you own a home, you may be required to release equity through re-mortgaging
  • If you fail to keep up-to-date with payments, the IVA could lead to bankruptcy
  • Your details are made public on the Insolvency register.
  • Creditors do not need to approve the IVA, some creditors can reject them.
Example IVA

Here is an example of how an Individual Voluntary Arrangement could work and make your debts affordable

A typical example of an IVA

* This is an example illustration of a typical IVA. We assess each customer individually based on their circumstances and payments are based on what is affordable.

Car Loan £10,000
Credit Card(s) £7,000
Store Card(s) £3,000
Loan £5,000

Outstanding Debt

£25,000

Total Debt Before IVA

£6,420

Total Repayable During IVA

Your monthly payments:

£564

Before an IVA

MONTHLY SAVING £457

£107

With an IVA

DEBT REDUCED BY 72%

How does an IVA work?
In just a few steps from making the first call, you could be on the road to controlling your unsecured debt.
Typically, you should expect the process of setting up an Individual Voluntary Arrangement to take around six weeks. However, the main thing to remember about the process of getting an IVA is that the Insolvency Practitioners are there for you every step of the way.
Step 1
We will take some details & assess whether it is right for you
Step 2
We will refer your case to the Insolvency Practitioner who will arrange the Individual Voluntary Arrangement for you
Step 3
Creditors will agree to your Individual Voluntary Arrangement and the first payment will be due within 6 weeks

Is an IVA right for me?

To qualify for an Individual Voluntary Arrangement, you must have the following:

  • A minimum of £5,000 worth of unsecured debt
  • At least 2 creditors
  • Be employed or self-employed
  • Have a monthly surplus income of at least £100

At Michael Alan, our team will assess your individual circumstances before providing a suitable debt solution.

There are some things to consider before entering into an IVA:

  • An Individual Voluntary Arrangement may have a negative effect on your credit rating for up to 6 years
  • If you own a home, you may be required to release equity through re-mortgaging
  • If you fail to keep up-to-date with payments, the IVA could lead to bankruptcy
  • Your details are made public on the Insolvency register
  • Debts not included within the IVA will remain outstanding
  • Creditors do have guidelines for allowances which can restrict your expenditure.
  • Creditors do not need to approve the IVA, some creditors can reject them.