We do not charge you for the advice and support we provide before your IVA is set up. There are fees involved in running your IVA.
Our fees follow the industry standard for IVAs and are set by your creditors. You must agree to the level of fees before your IVA is approved. We will deduct these fees from your monthly payment, so you don’t have to pay any additional costs.
The monthly contributions that you pay once the Individual Voluntary Arrangement (IVA) is approved include the payments to your creditors as well as the Nominee and Supervisor’s fees and disbursements (explained below).
Your creditors agree to the fees when they approve the arrangement. This means that the contributions remain affordable for you.
Nominee and Supervisor’s fee
The costs involved in an IVA are:
- A Nominee fee
- A Supervisor fee
The Nominee fee is the cost for assisting you to put to put the IVA proposal to your creditors. This is subject to approval by your creditor. Depending on who your creditors are and the amount of your monthly contribution it could be either the first 5 payments into the IVA or £2,000.
The Supervisor fee is 15% of any further contributions to cover the on-going costs of the IVA.
What are disbursements?
There are also other costs known as disbursements. These are expenses that we have to pay third parties and include bonding (insurance) to protect any money paid to your IVA, system maintenance and a registration fee to register the IVA with The Insolvency Service.
The cost of any legal advice specific to your circumstances may also be charged as a disbursement. If you own a property there will be expenses to cover the cost of any valuations of your property and land registry fees.
Your specific fees will be confirmed when your IVA proposal has been drafted. These are also subject to approval by your creditors.
If you were able to pay your creditors in full during the term of the IVA or if your IVA fails, the fees would not be refunded.
Who provides the IVA?
StepChange Voluntary Arrangements provide our IVAs. They are a subsidiary of the Foundation for Credit Counselling (FCC), a registered charity.
The charity is a non-profit organisation and is funded by the contributions from the financial services industry. StepChange Voluntary Arrangements gift aids any profits made from its IVA activities to FCC to help provide its debt advice services for free.
An IVA should be carefully considered because of the possible consequences for your personal, professional and financial life. There are several factors you should consider.
To find out if an IVA is the best debt solution for you use our online Debt Remedy tool. This will identify the most appropriate debt solution for your circumstances.
If an IVA is suitable for you, StepChange Voluntary Arrangements, our in-house IVA service, can support you throughout the process.