Why do I need debts over £15,000 and contributions of £200 per month to apply for an IVA?
Because applying for an IVA is a complicated legal process and can only be undertaken by a licensed Insolvency Practitioner, the costs of setting up the IVA are quite high. (Don’t worry though as we do NOT charge you a penny. Our service to you is totally free of charge. Your creditors pay our costs from your monthly payments.) Because your creditors pay our fees, the final return (dividend) to the creditors is less than what you pay into your IVA. Your creditors apply 2 basic rules in deciding whether or not to accept an IVA; • Where your debts are below £15,000 the cost of the IVA as a proportion of the debt is too high to be economically viable • Where the monthly payment is under £200, the cost of running the IVA would take up to much of the money coming in to make it economically viable. So if your debts are low, say under £15,000 and you are only re-paying £8,000, after our costs the return to your creditors is not high enough for them to accept the IVA. For that reason, IVAs ten
