What are the costs involved in setting up IVA

[Salts24]

Could you tell me what are the normal /expected costs involved in setting up and IVA with an a company, some reviews I've seen suggest none. Is this realistic.?[:0]

[MelanieGiles]

Hi Salts24

That is correct, in that the costs of putting together the IVA and supervising it are deducted from the agreed contributions that you pay into the scheme - so before the creditors get paid the IP will draw their fee which they have already prior agreed with creditors.

Some IPs may ask you for a first payment at the time of the creditors meeting, but this should be refunded to you if the IVA is not accepted.

[Salts24]

Hi Melanie,
So would a fee of £900 be ok up front, they do say that if theyt don't succeed and reduce your debts by this they will give it back is the norm.
many thanks
Vix

[MelanieGiles]

Personally I would not pay anything up front at this stage until you have an IVA proposal in front of you for signing. This is how I work in my practice, and I feel this is a fair way forward. As to whether you feel you are getting good service, I really cannot comment but if you feel it is right then it probably will be. No harm in shopping around though for a second opinion if you are having doubts.

[Lisa2009]

The IP acting for you would decide (WITH YOU) what your monthly payments to your IVA would be after working out your income and expenditure. The most you would probably be expected to pay is 1 months contribution. It is usually taken as a token of good will to your creditors. Most companies would return this to you if your application is unsuccessful.