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I am about to go into an IVA and have had the initial information from the practitioner outlining the charges they'll make, initially and during the running of the IVA. Could someone tell me what is reasonable to expect. Also, as a guide I worked out over the 5 years I'd be paying about 75% of the total debt, is this reasonably normal? Does it only reduce if you can make a final payment offer?

Hi Denise and welcome to the forum

IP charges vary from case to case and practitioner to practitioner.

Expect to pay between £1,500 and £2,500 for the nominee's fee, with between £500 and £1,000 each year for ongoing supervision. Of course these fees have to be agreed by the creditors as they are drawn out of the monies you pay over to the IVA Supervisor, so creditors effectively get paid the balance.

A dividend of 75p in the £ appears to be a good offer, and the timescale can only reduce if you are in a position to pay off all of the debts and costs in full.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Good morning,

The costs of setting up and running an IVA may seem high, but there is a lot of work involved in advising the client, preparing the IVA proposal, gathering all the information required, preparing and filing the Nominee's report, sending the proposal to the creditors and holding a creditors' meeting.

Effectively it won't cost you anything on top of the monthly payments you're already proposing to go into the IVA, as the costs and fees are paid from what will be going in to the arrangement. Creditors realise that insolvency practitioners need to be paid for their work, therefore they do not object to proposals that show the IP's reasonable fees coming out of the money going into the arrangement.

A dividend of 75p sounds like very good offer.


Kind regards,



Julia Simavi

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Hi
That is a good return,are you including the IP fees in that calculation ?
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp