www.iva.co.uk

Do IVA companies charge you and how much for setting up an IVA and when do they want the fee? There is little equity in my home, although we do own it, do they secure my debts on my house?

Hi,

An IVA will not be secured on your house at all and as long as you continue to make the mortgage payments it will be ok.

You would be charged fees by the company. These would come out of your monthly payment.

Visit www.iva.com for a list of companies and reviews. Give one or two a ring. The advice is free and impartial.

A great link provided above and it's always advisable to talk to 2 or 3 companies to ensure you get impartial advice, they will explain everything in respect of fees and any other queries you have. All the best. x

Fees can vary from company to company, but these days they are generally regulated and set by the voting creditors. It is vitally important that you understand the fee basis of your chosen IP firm before entering into the voluntary arrangement, and personally I would choose one who draws their fees at the same time as they distribute monies to creditors and on the basis of the level of monies you put into the arrangement, rather than a firm who charges fixed fees or fees based on time costs.

As a benchmark my firm took the first five monthly payments and then 15% of all monies realised by the iva to be paid quarterly when the creditors receive their dividend. They also noted a maximum figure - about 200 - for disbursements. I don't know how this compares to other peoples experience but it seems fair to me for professional fees.

That is because that sum would have been stipulated by creditors. Any IP who things it is a sensible method of charging nominee's fees, needs to find another profession!