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.

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 the IP is helping you to draw up and propose an IVA, they are acting as Nominee. Once the IVA is accepted, they will be the Supervisor, and will be responsible for the administration of the IVA. These two distinct stages in the progress of the IVA tend to have separate costs, as there is no guarantee that your IVA will in fact be accepted and get to the second phase.

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.

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