IVA Costs

If your financial situation is in the state where you are considering an IVA solution, then make sure you understand the costs and procedures that will be involved in the process. The costs of pursuing an IVA are usually less than than the costs associated with bankruptcy. TYhe main reason for this is there are no statutory costs for IVAs. The main costs you can expect to have to pay for an IVA are those that you will be charged by your Insolvency Practitioner.

In order to get an IVA, you need to use an IP, as they are the only professionals licensed to carry out the required processes within the UK legal system. An IVA is a legal contract between you and your creditors, and so must be handled by someone with the required expertise and standing.

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 tend to be attractive to people partly because of the relatively low costs involved, however, it’s always worth making sure you know about any potential costs up front before taking any decisions.

If you need more information about beingdebt free, or costs involved in an IVA then visit national debt relief.