Who pays the IVA fees
Is there an application fee?
No, it is completely free to apply for an IVA with IVAorg.
All our advice and support during the IVA application is provided free of charge.
No upfront fees are required and, in the unlikely event that your IVA is not accepted, there are no charges for you having tried.
IVA costs, charges and fees
Setting up and administering an IVA is an expensive business, which is why there are always charges and fees involved, irrespective of which IVA provider you use.
IVAorg CIC proposes a fixed fee, to be spread evenly throughout the term of the IVA, which must be agreed by your creditors before your IVA begins. It is for your creditors to decide whether our fee is reasonable and, if not, they can seek to reduce it.
You will be required to agree to the premise of our fees as part of the application process and full details will be included in your IVA proposal.
Who pays the fees
In most cases the IVA fees are paid by creditors because they allow the fees to be drawn from the money you pay into your IVA.
However, if your situation improves during your IVA to the point where you can afford to repay your debts in full, say through a windfall, then you would also be obligated to pay the IVA fees in order to bring your IVA to a successful conclusion.
All other insolvency practices will also charge you if your IVA fails, but IVAorg’s Unique pledge has been introduced to protect our clients in the event that their IVA should fail through no fault of their own.
What are the IVA fees for?
It takes many hours to prepare and propose an IVA and these costs are normally charged by way of a Nominee Fee.
There is another fee called the Supervisor Fee, which covers the costs associated with the ongoing administration and maintenance of the IVA.
Administrational duties include: dealing with your queries; dealing with your creditors’ queries; agreeing creditors’ claims; distributing dividend payments to creditors; undertaking annual income and expenditure reviews; undertaking regular reviews of your case and reporting annually to creditors.
Additional fees, called disbursements, are also charged to cover specific costs, such as legal fees, that are incurred within each individual case.
It is worth noting that IVAorg’s fixed fee covers each of these separate elements with a single charge, a full breakdown of which is provided inside each IVA proposal and they are aways subject to creditors approval.
Who profits from the IVA fees?
All our IVAs are processed internally by our Insolvency Practice and our in-house team of IVA specialists.
All profits generated through our insolvency practice, or as a result of our IVA activities, are used to further our company’s social objectives, specifically to assist in the relief of poverty for people living in the UK.
This means that if you successfully complete your IVA using IVAorg CIC's services, you are also directly helping us to assist vulnerable members of your community who are also struggling to control their debts.
