IVA Example

IVA Example

If after discussing your case with you we advise that the best way forward would be an Individual Voluntary Arrangement – IVA – then you will no doubt want to know how much you will have to pay.

This is how we work out the repayment proposal to your creditors.

We take full details of all your income, after tax.
We take full details of all your expenditure. We include such items as mortgage repayments, rent, council tax, bills etc… What we do not take account of at this stage is the payments that you are making to your unsecured creditors – the people that you owe money.
Next we work out how much your disposable income is by deducting your expenditure from your income.
We then multiply this figure by 60. This is the normal monthly period over which an IVA runs.

Below is a specific example.

Your take home pay is £1800 a month.

Your total outgoings are £1550.

This means that you have a disposable income of £250.

Multiply £250 x 60 = £15,000.

£15,000 is therefore the amount available to be paid in to your voluntary arrangement.

We then offer this figure to your creditors.

REMEMBER THE ‘I’ IN IVA

An IVA is an Individual Voluntary Arrangement and every single one we deal with is different. The most common form of IVA has 60 monthly payments. Some are shorter than this and others provide for some monthly payments and a lump sum at some point. Our debt experts will spend as much time as it takes to put together your agreement so that you can be confident that you will only pay what you can genuinely afford – no more and no less.

For further information on the advantages and disadvantages of an IVA please follow the link to The Small Print.

Call us today to find out more

0800 988 8199

Fees & Information

We cannot guarantee a reduction in interest or charges. If an IVA is not maintained it could lead to bankruptcy. Whilst initial debt advice is free, fees will be charged if a solution is taken out.

Fees related to Debt Management Plans are in two parts;

"Initial Fee" means your first two "Monthly Payments", which is paid by You to "Us". This represents our fee for establishing your arrangement, and therefore is not distributed to your creditors, and can be paid in two separate instalments. Retention of this fee will put you into further arrears.

"Monthly Fee" means the Fee payable for our Services each month. This is an amount equal to 17.5% of your "Monthly Payment" (apart from your first two "Monthly Payments" which is the "Initial Fee"), subject to a minimum payment of £30 for disposable incomes of 0 - £100, and £35 for disposable incomes of £100.01 - £200.

Fees incurred for Individual Voluntary Arrangements are variable dependent upon the monthly contribution to the arrangement and the agreement that is reached with your creditors. Fees are made up of Nominees fees relating to assistance given to prepare your proposal and Supervisor fees which relate to the ongoing monitoring of your IVA. Fees are already included as part of your monthly contribution. The level of fees and the method of payment are both agreed by your creditors at the outset of the arrangement.

A record of your agreement with us will be held on your credit file for up to six years, and your ability to obtain credit in future may be affected.

You are provided a cooling off period of fourteen days from the date the agreement was deemed to commence, during which you may cancel our agreement. Should you give notice to us that you would like a refund of a payment, or payments, (being other than the initial fee) then where no distributions have, at that time, been made by us, or are in the process or course of being made by us, in respect of that payment or payments this will be made in full (i.e. without deduction of our fee of 17.5%).

DEMSA/OFT Approval

REMEMBER THE ‘I’ IN IVA

Fees & Information