IVA - the facts
Firstly, we should point out that an IVA is not the only way to solve a debt problem but if you owe more than £15,000 in unsecured debts to two or more companies (eg, credit, store or debit cards, overdrafts or personal loans, not a mortgage) then it does compare very favourably.
So what exactly is an IVA?
An IVA (Individual Voluntary Arrangement) is a private legal agreement between you and your creditors, where you pay back what you can realistically afford with the remaining debt being written off by your creditors. Normally lasting five years, the agreement covers all of your unsecured debts, including loans, credit cards, catalogues, store cards, overdrafts etc.In general, our clients typically:
- have unsecured debts of more than £15,000
- have more than two different unsecured creditors
- are not reliant on welfare benefit income only
Grant Thornton views the IVA as a flexible financial plan which is designed to revolve around your needs and puts you back in control.
What are the fees for an IVA?
There are two fees which will need to be paid as part of your IVA, known as Nominee and Supervisor fees. The Nominee fee covers the cost of setting up your IVA and the Supervisor fee is the cost of managing it.
We are different to many companies that provide IVAs, Grant Thornton will not charge you an up-front arrangement or assessment fee. All payments that you make go towards your IVA. Fees only become payable once your IVA has been agreed and are payable from the monthly payments into your IVA. So, if for any reason your creditors reject your proposal or you choose to withdraw your offer, you will not have to pay for the work that we have done for you.