People with debts over £5,000 at the moment are asking themselves questions like: “How much is an IVA?” and “What does it cost?” on this page we will tell you everything you need to know about any costs associated with an individual voluntary arrangement (IVA).
- 1 How Much Does An IVA Cost?
- 2 IVA Costs – How Much Do I Have To Pay Into My IVA?
- 3 What Is The Absolute Minimum Cost Of An IVA? Minimum Monthly Payment?
- 4 This All Sounds A Bit Too Good To Be True – Are There Hidden Costs With An IVA?
- 5 How Much Do People End Up Paying Into An IVA On Average?
- 6 IVA Costings – How Is The Monthly Amount Ascertained?
How Much Does An IVA Cost?
There are no additional fees associated with an IVA, it is one, low monthly payment which is distributed to your lenders and a portion of the money which is paid each month goes to the insolvency practitioner managing your IVA (In short, the fees are already taken from your monthly payment and you don’t pay any additional fees).
IVA Costs – How Much Do I Have To Pay Into My IVA?
The amount you pay into your IVA each month is tailored to what is affordable to you, so any costs of an IVA which are paid monthly are consolidated (lowered) based on your personal circumstances.
If you can (from findings from your initial free debt assessment) can afford £200 per calendar month, then this is what you would be expected to pay into your IVA, any monthly costs/payments are based on what you can afford, otherwise it would be unsustainable.
What Is The Absolute Minimum Cost Of An IVA? Minimum Monthly Payment?
There have been cases of individuals who have £80 per month in spare income and this is what is paid into the IVA, the idea is to enable the person in debt to have a normal standard of living whilst paying a largely reduced amount towards their debts, and after a period of 5 years the IVA is usually completed (unless you own assets) and the remaining debt is written off.
This All Sounds A Bit Too Good To Be True – Are There Hidden Costs With An IVA?
An IVA sounds like an attractive debt solution and is highly effective, it is also backed by Government legislation written into the 1986 insolvency act and therefore is an official insolvency solution and is backed by British law – an IVA is a real thing, and thousands of people are benefitting daily, and, NO there are no hidden costs or hidden charges with an IVA.
How Much Do People End Up Paying Into An IVA On Average?
A typical example of a monthly payment amount into an IVA is something in the range of £150-£250 per month, the minimum is £80 per month, which enables people claiming universal credit or income related benefits to get an IVA in many cases too.
The amount paid into an IVA (the monthly cost) is purely dependent on affordability, and the IVA will only go ahead if the person in debt can afford to meet the negotiated monthly payment.
IVA Costings – How Is The Monthly Amount Ascertained?
The insolvency practitioner will take a look through your personal finances and act as a mediator between yourself and your lenders (creditors) to reach the lowest possible viable payment amount each month, the fee for the insolvency practitioner is taken out of the monthly payment so there is no need to worry about hidden charges.
Once everyone is agreed and all checks and balances are in place in terms of affordability, the IVA can be presented and all being well it can go ahead.
To find out more about the IVA and how it might be able to help you reduce your own monthly costs and outgoings, get in touch with us for a no obligation chat to find out if it could be suitable for you and to help you become debt free and give you a better quality of life.