Fees
If you enter into an IVA, there will be fees involved. The level of any fees taken will be decided by your creditors and any genuine costs in relation to your IVA may also be claimed back.
Individual Voluntary Arrangement fees
We will only be charged a fee if your Individual Voluntary Arrangement (IVA) is proposed and accepted by your lenders.
Fees are paid out of – not in addition to – your regular affordable monthly payments.
- Nominee's fees
- Supervisor's fees
- Costs and expenses
Nominee's fee
This fee covers the professional costs and charges involved in arranging your IVA, including:
- Preparing your IVA proposal - which sets out the proposed terms of your IVA and provides your lenders with a detailed snapshot of your finances.
- Organising the creditors' meeting, in which lenders can request changes to the terms of your IVA.
It will typically be between £1,000 and £2,700 and is often capped to an amount equal to your first 4-6 months' IVA payments, or it may be a fixed amount as instructed by your lenders.
The Nominee's fee will be taken as instructed by lenders at the virtual meeting that determines whether the IVA will be accepted. The lenders usually decide to either allow the Nominee fee to be taken before payments to your lenders or will instruct us to take the Nominee fee alongside making small payments to them from your third monthly payment.
Supervisor's fees
The Supervisor's fees cover the ongoing work involved in running your IVA and is calculated as a percentage of "realisations": typically it is charged at 15-18% of any money received by the Supervisor and distributed to your lenders, such as your monthly contributions, any assets (e.g. the equity in your property, successful PPI mis-selling claims) and windfalls (e.g. an inheritance) that you receive during the term of your IVA. Your lenders will decide the percentage or amount that can be charged as a Supervisor fee.
Costs
There might also be costs incurred directly in connection with the running of your IVA, such as postage and insurance, which your IVA provider is entitled to claim back.
How much you will pay in fees will be clearly set out in your IVA proposal. They must be approved by your lenders and may be changed before the proposal is accepted by your lenders.