IVA Costs and Fees

Most of the advertising for IVA’s gives the impression that the IVA company provides a Free Service or that the fees charged are of no consequence to the debtor. This is very misleading.

It is true that creditors pay for the costs of an IVA. However, as our charges to the creditors are lower than most other IVA providers, we get IVA’s approved that would otherwise get rejected. Therefore we can help even more people out of debt than most other IVA companies.

Typical Fees Of Other IVA Providers

When proposing an IVA to your creditors, you’re offering to pay back between 25p and 100p in the pound, normally over 5 years. This is called the dividend.

The creditors receive this dividend, minus the IVA company’s fee. Therefore it is true that the creditors bear the cost of an IVA by accepting these terms, however the charges levied by the IVA company is a factor in whether creditors accept or reject the proposal.

The IVA fees charged to the creditor are in 2 parts.

• A Nominee’s Fee – often £2500 +vat
  This is the fee for setting up and proposing the IVA.
• A Supervisor’s Fee – often £1000 +vat per year.
  This is the fee for supervising the IVA for the normal 5 year duration.

Therefore, many other IVA companies indirectly trouser almost £9000 (including vat) of your money should the IVA complete.

Our Low Fees

Our fees are considerable less than the industry normal.

• Our Nominee’s Fee
  £750 +vat for debts under £15,000
  £1500 +vat for debts over £15,000
• Our Supervisor’s Fee
  £50 +vat per month.

Therefore our fees are £3,750 +vat or £4,500 +vat, depending on the level of the debt. This is about 40% less than the majority of other IVA providers.

Our Minimum Level of Debt

In law, there is no minimum level of debt for an IVA.
Due to the costs involved, there must be a minimum level of debt to allow a substantial repayment to the creditors.

Many IVA companies will only propose an IVA for debts of over £20,000. However, often people owe more than they realise. Bearing this in mind, many IVA companies advertise their services for debts of £15,000, knowing that many people thinking they have debts of around £15,000 actually owe much more. Many such companies rarely accept cases for debts, actually of, £15,000.

Due to our lower charges, we routinely have IVA’s accepted for debts of around £15,000, and many for £10,000 – £12,000. We’ve had IVA proposals accepted for debts of £8,000.
IVA’s for such low debt levels are for exceptional circumstances. For example, if the debtor has an job such that bankruptcy means instant dismissal, an IVA is better for debtor and the creditors.

Our Minimum Monthly Payments

In law, there are no minimum monthly payments for an IVA.
Most IVA advertising refers to minimum payments of £200. Our lower charges mean more for the creditors, hence lower minimum payments – therefore we can get more people accepted onto an IVA.
We have many clients paying as little as £150 – £170 into their IVA’s. A few pay as little as £140 per month, however, these are exceptional cases as per the example above.

No Up Front Payments

We do not charge up front fees.
Many IVA companies charge up front payments from debtors to prepare an IVA proposal, typically £500. We consider this to be morally wrong as it often means more debt for the client. Some companies advise clients to borrow to fund this up-front the payment. Now, this is criminally wrong. This is incurring more debt when it is known that the client is insolvent and has no ability to, nor intention of paying it back.

How We Keep Our Fees Low

Many debt companies offer only IVAs and spend a fortune advertising this single service. As we offer the full range of debt solutions, we can help most people who contact us who can afford to pay at least £100 per month towards their debts.

Due to our professional excellence and experienced, highly trained staff, we are able to operate very efficiently. All this helps keeps our costs down while offering the highest standard of service.

Our Excellent IVA Approval Rate

We boast a better than average IVA proposal approval rate of about 97%. The industry average is about 92%. As our fees are low, it is in essential for us to maintain this excellent record. We only have cases rejected when someone has been less than honest with us. For example, creditors find our about debt not included in the IVA proposal.