IVA Costs

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When your finances are in a bad enough state that you are having to consider an IVA, it’s best to make sure you understand the potential costs involved in any of the procedures involved.The costs of pursuing an Individual Voluntary Arrangement tend to be significantly less than those that are associated with bankruptcy proceedings. This is partly because there are no statutory costs for IVAs. The main costs you can expect to have to cover for an IVA are those chargeable by the Insolvency Practitioner who handles your case.

For you to be able to enter an Individual Voluntary Arrangement, you will need to find an Insolvency Practitioner to handle your case, as they are the only professionals licensed to carry out the required processes associated with an IVA. An IVA is a legal contract between you and your creditors, and so must be handled by someone with the proper credentials.

Your IP should be able to make sure you know what costs are going to be payable for their services. If you are unsure at any time just ask them for clarification. If your finances are already in difficulty, the last thing you need to deal with is a hefty unexpected bill.

While your Insolvency Practitioner is helping you set up and propose an IVA, they are acting as whats known as a Nominee. Once the Individual Voluntary Arrangement is accepted, they will be known as the IVA Supervisor, and will be responsible for the administration of your Individual Voluntary Arrangement. These two distinct stages in the progress of the Individual Voluntary Arrangement tend to have separate costs involved, as there is no guarantee that your IVA will be accepted and get to the second phase, therefore the IP has to cover costs for work done.

IVAs can be a good debt solution for you because of the low costs involved, though it’s always worth making sure you know about any costs involved before making any decisions about your IVA.

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