How much does an IVA cost?
The cost of an IVA comes in two parts: the ‘nominee fee’, which is charged by Debt Lifeboat up to the date of the creditors’ meeting, and the ‘supervisor’s fee’, which is paid to Debt Lifeboat for overseeing the IVA from the creditors’ meeting onwards. You will not personally have to pay any fees because: – if the arrangement is not approved, Debt Lifeboat will not charge you a fee; and – if the arrangement is approved, Debt Lifeboat’s fees will come out of your monthly contributions to the arrangement, before creditors are paid. So, what you agree to pay is what you pay – you don’t pay anything over and above that amount. And it is the creditors who decide on the level of remuneration that Debt Lifeboat receives. Back to questions…
When you propose an IVA to your creditors, you will offer to re-pay a percentage of the debt via monthly installments. The sum suggested is based on what you can afford to pay. The Insolvency Practitioner (IP) will help you figure out this number. This means that monthly re-payments vary on case-by-case basis and depend on what assets you have and much money you have available after living expenses have been deducted from your monthly income. There does tend to be a minimum amount that creditors will accept as part of the IVA proposal. Creditors will most likely reject any proposal that pays them less than 20-25% of what they were originally owed.
