IVA Fees

"IVA Fees" is a popular search term because of the debt write off available if an IVA is the best debt solution for you, and the need to know how much you're going to pay in fees for an IVA.

There has always been a lot of confusion over how much an IVA costs. The reality is this:

  • If an IVA is accepted you are likely to write off between 50% - 60% of your debt
  • You'll pay back the rest over 60 months with the monthly repayment going to the IVA company
  • The IVA will then pass on your monthly repayment less their fee for managing the IVA to your creditors
  • This is why an IVA is often called free, as the IVA fees are not being paid by you directly, but are being deducted from your new manageable monthly repayment
  • This means that your creditors don't see all of the money you repay, but are still happy with the arrangement

To help you find a good IVA company we offer a free to use service that is accessed via our charity debt advisors.

Applying for an IVA

To get immediate help now, use our IVA advice service which is accessed via our charity debt advisors. They will tell you whether it's the best solution for you and help you organise it if you want them to.


Summary

What is an IVA

  • Introduced by the Government in 1986 as a way of helping individuals not become bankrupt
  • You need to owe more than £15,000 and you or your partner be employed
  • Typically you can write-off 50% - 60% of your debt and pay the balance over 5 years (60 months)
  • Interest and charges stop and creditors can't change their mind
  • Your home is protected but you will be required to release any equity you have any
  • It's a popular debt solution with nearly 40,000 IVA's started in 2008, that's one every 13 minutes
  • We only recommend organisations that have a track record of getting IVA's accepted by creditors and don't charge fees


Comparison Table Of Debt Solutions

  Solutions Debts Written Off Legally Binding Interests & Charges Residential Status  
 
Average 58%*
Yes
Stopped
Tenant or Homeowner (Eng/Wales)
  
 
Not Normally
No
Many Freeze
Tenant or Homeowner
  
 
Consolidated
Yes
New Rates & Charges
Tenant or Homeowner
  
 
Bankruptcy is a severe last resort if you are in serious debt and no other debt solution can save you from going bankrupt. Bankruptcy may protect you from your creditors and allows you to start fresh, but you need to think carefully about all the implications involved.
  
 
*58% was the average debt write off with an IVA, April - June 2008, CCCS
  
     

 

Popular IVA Searches