There are two fees payable to an Insolvency Practitioner for the work involved in an IVA, these are deducted from the monthly payments you make.
The first fee charged by the insolvency Practitioner is for setting up the IVA – known as the Nominee fee, the second fee charged by the insolvency Practitioner is for administering the IVA over the agreed term. This fee is known as the Supervisor fee. There are also expenses payable to entities who provide necessary services to the IVA. Please see our client examples of approved IVA’s below: –
Case 1.
- Nicola owed creditors £24,235 (cards & loans)
- It was evidenced that Nicola could pay 61 payments of £250 (£15,250, which was 62.92% of the original debt)
- Nominee’s Fee: £1,250
- Supervisor’s Fee: £2,100
- IVA Expenses: £739
- Nicola proposed to pay creditors £11,161 over 5 years
- Creditors accepted a repayment of 46.05% of the amount they were owed, with 53.95% being written-off
Case 2.
- Keith owed creditors £24,975 (Credit Cards, Store Cards & Loans)
- It was evidenced that Keith could pay 61 payments of £200 (£12,200 which was 48.85% of the original debt)
- Nominee Fee: £1,000
- Supervisor’s Fee: £1,680
- IVA Expenses: £714
- Keith proposed to pay creditors £8,806 over 5 years
- Creditors accepted repayment of 35.26% of the amount they were owed, with 64.74% being written-off
Case 3.
- Muhammad owed creditors £33,253 (Credit Cards, Loans & Sole Trader debt)
- It was evidenced that Muhammad could pay 60 payments of £200 (£12,000 which was 36.09% of the original debt)
- Nominee Fee: £1,500
- Supervisor’s Fee: £2,000
- IVA Expenses: £808
- Muhammad proposed to pay creditors £7,692 over 5 years
- Creditors accepted repayment of 23.13% of the amount they were owed, with 76.87% being written-off
Case 4 – Interlocking & third party funds.
- Simon & Sally owed creditors £49,133 (Loans & Credit Cards)
- Due to jointly held debts an Interlocking IVA was proposed
- It was evidenced that they had no surplus household income but they did have equity in their home
- Third Party Funds of £10,000 were proposed In lieu of the equity in their home (which was 20.35% of the original debt)
- Nominee Fee: £1,500
- Supervisor’s Fee £1,500
- IVA Expenses: £284
- Simon & Sally proposed to pay creditors £6,716 over 18 months
- Creditors accepted repayment of 13.67% of the amount they were owed, with 86.33% being written-off.
Note – all funds are held in separate bank accounts which accrue interest individually.
Fees would be fully explained prior to you proceeding with an IVA and will also be disclosed in your IVA proposal which is sent to your creditors.
It is important to note that no additional costs to you other than your agreed monthly IVA contribution.
The debt write-off amount for each customers differs depending upon their individual financial circumstances and is subject to approval by their creditors.
*An IVA may not be suitable in all circumstances. Fees apply. Entering an IVA will affect your credit rating.
