IVA Costs and IVA Fees

Through our sister company ClearDebt, who manage all our IVAs we aim to be an ethical and transparent IVA provider and believe all our working practices, and our fees, should be available for all to see.

When entering into an IVA with us the fees for your IVA will have been fully explained to you by your advisor and they will also be detailed in your IVA proposal. However, if, at any time, you do not feel you fully understand the IVA fee structure we have in place, please contact us and we will explain this 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 fees.

There are two sets of fees which are charged for an IVA: The Nominee's fee and the Supervisor's fee. We do not charge any set up fee.

The Nominee's fee covers the time and knowledge needed to consult with you and establish a clear picture of your income and expenditure, assets and liabilities in order to create the IVA Proposal which is submitted to your creditors. The Nominee represents you from the start of your instructions, puts the proposal to your creditors and if the proposal is accepted, 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 on, 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 for you.

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

In addition to the above Nominee's fee, following approval of your 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 be assigned a day-to-day account manager who will be your main contact throughout the duration of your IVA. He/she will be qualified to help you should there be any changes to your circumstances which affect your ability to pay your monthly IVA contribution. Furthermore, your Supervisor will hold annual reviews throughout your IVA term in order to ensure payments are still affordable for you and to address any variations to the arrangement that may be needed.

The Supervisor fees will never be 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.

No charge is made to you for any debt advice and guidance 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 paperwork to us. However, if you decide not to proceed after we have circularised your creditors with your IVA 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 course of action to you which may be acceptable to your creditors at that time.