Individual Voluntary Arrangement Costs
Debt can bring strain upon families and be a leading cause of depression; this shouldn`t have to be the case. There are debt solutions out there to suit most kinds of money problems and talking your situation through with debt advisors can help put you in the right direction.
Eligibility of IVA's
If your debts are of a certain amount (15,000 or more) then you could be eligible for an Individual Voluntary Arrangement (IVA). This insolvency solution works by looking at your current money matters working out how much you can afford to pay whist still paying for living costs. A sum is drawn up to be offered to creditors in which you will pay in one monthly payment, this is then divided up around creditors, possibly saving hundreds of pounds on your current repayments.
All of the interest rates on current payments as-well as late payment charges are frozen and any possible court and legal action against you is stopped upon an IVA being taken out. There are also no upfront Individual Voluntary Arrangement costs to pay, this can also be a huge help to you from your current debt stand point.
What Individual Voluntary Arrangement Costs Are Involved?
Due to its legal nature some Individual Voluntary Arrangement costs are involved in the process as the arrangement must be put in place by a licensed practitioner.
When you find a company to act on your behalf, they will help you to work through an income/expenditure form to determine the figure of money to be offered to creditors. At this early stage of the IVA your chosen agent is known as a Nominee. The Nominee will summon a meeting of all of your creditors; at the meeting creditors will be given details of the proposed agreement, three quarters of them must agree to the terms and conditions. If this is the case then the IVA will be put in to place. There are Individual Voluntary Arrangement costs to be paid known as a Nominees fee. This is charged in relation to work that is carried out before the IVA is in place.
IVA Fees
This fee will not cost you directly as you will still pay the sum of money each month already outlined in the agreement. The Nominee will reclaim their fees from the payments that are paid by you in to the IVA; fees are deducted before dividends are forwarded to creditors.
Other Individual Voluntary Arrangement Costs are involved in the second stage of the IVA. Once the IVA is in place the Nominees role becomes the role of Supervisor. The Supervisors part in the IVA is important as they will oversee the whole of the arrangement (IVA`s usually last for five years). They will deal with any all contact with creditors on your behalf, as well as making sure the terms of the agreement are still kept. Their fees will be taken in the same way as the Nominees, from IVA payments before creditors receive their share. This is done more frequently in quarterly or annually periods.