IVA costs and fees

PayPlan Partnership Limited will only charge fees if an IVA is approved by creditors.

Their fees are taken from the money you pay into your arrangement and you won’t need to pay these on top of payments into your IVA.

They operate a transparent fixed fee cost of £4,200 that includes all the fees in an IVA; they are required by law to split these into different types of fee;

• The Nominee Fee (which covers the set-up of your arrangement)
• The Supervisory Fee (which covers the ongoing management of your arrangement)
• Any other costs and expenses associated with the arrangement

As part of your proposal, they will start making payments to your creditors 90 days after it is approved or within 90 days of you making your first payment, whichever is later. This means that the amount owed to your creditors begins to reduce from then.

In some cases, creditors may try to amend the IVA fees.

In general, any changes to fees made by creditors will not impact on you but they’ll always keep you informed if this happens.

With an IVA, there are three different types of cost charged by an Insolvency Practitioner.

1. Nominee’s Fee
   This fee covers the setting up and preparation of your IVA. This includes us:
• Working with you to get a detailed understanding of your current financial situation
• Preparing the paperwork and talking to your creditors about your arrangement 
• Making sure the arrangement goes ahead on terms you are happy with
• PayPlan Partnership Limited charge a fee of £2,100 to include all other necessary expenses
2. Supervisor’s Fees
   These fees are charged for the ongoing administration of the IVA which includes collecting and distributing your monthly repayments, helping and supporting you during your IVA, dealing with any queries raised by your creditors, completing an annual review of your financial circumstances, reporting annually to you and your creditors about the progress of the IVA and finally completing all the steps to conclude your IVA.
   
   PayPlan Partnership Limited charge a fixed Supervisor’s fee of £2,100 regardless of the amount of your monthly contribution. They’ll charge an additional 15% on any other asset realisations that may come into your arrangement, for example, windfalls, any additional income or compensation type claims.
3. Disbursements
   These are costs paid by the IP to third party companies for various costs and expenses of administering the arrangement and will typically include, software licences, insurances, and registrations that are required as part of the arrangement.
   
   These may also include payments made for the provision of additional services to provide the best return for your creditors. PayPlan Partnership Limited include all of these costs in their overall fixed fee of £4,200, there are no hidden charges.

If you’re self-employed, PayPlan Bespoke Solutions Limited will manage your IVA. Click here for more information on their fees and services.

Get in touch today to discuss your options and ensure you’re on the right path to clearing your debts.