This section of the E-insolvency site will exlplain the costs associated with an IVA.

IVA Costs

The main reason why IVAs are so popular with both creditors and debtors is that the fees tend to be less than the court costs and Official Receiver fees involved in a bankruptcy.

The costs of setting up and running an IVA are paid by two lots of fees:

1. Nominees’ Costs
2. Supervisors’ Costs

To prepare an IVA there is a lot of work to be carried out such as :

1. Costs of preparing the IVA proposal
2. Costs of gathering all the information required
3. Costs of preparing and filing the Nominee's report
4. Costs of sending the proposal to the creditors
5. Costs of holding a creditors' meeting.

The E-insolvency service work on a very strict “no up front costs basis”.

This means when the IVA starts all the costs of preparing the IVA get paid  out of the monthly contributions that are already going in to the IVA by the debtor.

This method is unique  and generally means that the creditors are paying for the IVA and do not object to proposals that show that reasonable fee are coming out of the money going into the arrangement.

Once the IVA has been approved, you are protected from any further action that your creditors may threaten to take.

If a creditor does contact you, either by letter or phone, you should inform them that you have now entered into an IVA. As long as you notified the Insolvency Practitioner of all of your creditors, each one of them would have been sent a copy of the Chairman’s Report. This is a report which explains the outcome of the Creditors Meeting.

If you wish to discuss the Individual Voluntary Arrangement (IVA) procedure and understand how it can help you please telephone freephone 0800 074 6918.