In an Individual Voluntary Arrangement (IVA), the fees are typically paid from the monthly payments that you make towards your debts. An IVA is a legally binding agreement that allows you to reach an agreement with your creditors to pay off your debts over an extended period of time.
During the course of the IVA, you will be required to make monthly payments towards your debts. The payments will be divided among your creditors based on the terms of the IVA, and a portion of the payments will be used to cover the fees associated with the IVA.
The fees associated with an IVA may include:
- The insolvency practitioner’s fees: These are the fees charged by the professional who oversees the IVA.
- Nominee’s fees: These are the fees charged by the professional who helps you to negotiate the terms of the IVA with your creditors.
- Supervisor’s fees: These are the fees charged by the professional who monitors the progress of the IVA and ensures that you are making the required payments.
The fees associated with an IVA can vary widely, and it is a good idea to carefully review the terms of the IVA before agreeing to it. It is also a good idea to speak with a qualified UK debt adviser if you have any questions about the fees associated with an IVA.