There are actually set up costs - this is called the nominee fee and under current protocol from a number of creditors is based upon four or five times the level of your monthly contributions - but is paid after the IVA has been accepted and only if it is accepted. This covers the work carried out by the IP and immediately following the creditors meeting. Thereafter, fees are generally to be charged at 15% of all future realisations.
This method of charging has only recently been introduced, and is not popular with all creditors or IP's, so you may still see some firms charging a fixed rate for time actually spent in working on the case, which in my opinion is a much fairer method.
Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp
See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp
