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