The Cost of an IVA: ClearDebt's IVA Fees and Costs

When we launched ClearDebt, in 2004, we did so determined to be the most ethical and transparent IVA provider in the market place. That is still our goal: We believe all our working practices, and the cost of our IVAs, should be available for all to see.

How much does an IVA Cost?

The IVA fees will have been fully explained by your advisor and will be detailed in your IVA proposal. But, if, at any time, you do not feel you fully understand the fee structure we have in place, please contact us and we will explain the cost in more detail.

The fees ClearDebt charge for initiating and supervising your IVA are included in the agreed amount you pay each month into your arrangement. There are no additional or hidden IVA costs.

There are two sets of fees which are charged for an IVA: The Nominee's fee and the Supervisor's fee. No other fees are charged.

The Cost of an IVA: Nominee's Fee

The Nominee's fee covers the time and expertise needed to consult with you and establish your income and expenditure, assets and liabilities in order to put together the IVA Proposal which is submitted to your creditors.  The Nominee represents you from the beginning of your instructions to help you put a proposal to your creditors until the creditor's meeting and, if the proposal is accepted, your Nominee becomes your Supervisor thereafter.

The Nominee's fee can vary from £550 to £2,500 depending on the amount of debt you have and the number/mix of your creditors. This will be taken from the first few (usually three to five) payments that you make - so if you abandon the IVA early, little or none of your debt will have been paid off.  IVAs are rarely abandoned - particularly in this early stage as the IVA monthly payment plan is calculated to be affordable and achievable.

If you are a sole trader, partner in a business or have complicated affairs, the Nominees fees may occasionally be higher - but we will explain the reasons for this if they are higher than as previously stated.

The Cost of an IVA: Supervisor's Fee

In addition to the above, following approval of the IVA, a monthly Supervisor's fee will be taken.  The Supervisor's fee covers the specialist work carried out throughout the duration of your IVA (normally a five year period) to ensure it is managed correctly and ethically.  You'll also have access to a day-to-day account manager who will be your main contact throughout your IVA who will be qualified to help you should any changes to your circumstances affect your ability to pay your monthly IVA contribution.  Furthermore, your Supervisor will conduct annual reviews throughout your IVA term to ensure payments are still affordable and to address any variations that may be needed.

The Supervisor fees are never more than a maximum of 15% of all the contributions you make over the period of the IVA, taken monthly, in fulfilment of the supervisory role.

The Cost of ClearDebt's IVA Advice

We don't make any charge to you for any debt advice given prior to the IVA being prepared and we don't charge for our service up to the point where you return your completed, agreed proposal to us. However, if you decide not to proceed after we have circularised your creditors with your proposal, we reserve the right to charge you up to £200 to recover some of the costs and disbursements that we have incurred. There are never any other charges whatsoever.

If, in the unlikely event your proposal is refused by creditors, we do not make any charge to you. We will suggest an alternative programme to you which may be acceptable to your creditors at that time.

Can I get an IVA? »

 

For more detailed information on the fees we charge download the Creditors Guide to Supervisors Fees document (pdf).