Direct Debt Advice

The costs of an IVA depend entirely on the amount of disposable income you have. Disposable income in this context means the amount of income you have left over after your essential expenditure. Guidelines exist on the amount creditors will normally accept for essential expenditure. Based on this it is only possible to give minimum guidelines.

The most common type of IVA consists of 60 monthly payments made into a fund over a five year period. The following tables show what the minimum contribution needed for different debt amounts.

Total Debts	Monthly Payments	Amount paid to IVA
£80,000	£445	£26,700
£70,000	£400	£24,000
£60,000	£360	£21,600
£50,000	£320	£19,200
£40,000	£275	£16,500
£35,000	£260	£15,600
£30,000	£235	£14,100
£25,000	£215	£12,900
£20,000	£200	£12,000

Note: for an IVA paid entirely out of income there is a minimum payment of around £200-300 per month. This is so that the total contributions are enough to cover the fees of running the IVA, and still have sufficient funds to make a significant pay out to the creditors.

Lump sum IVA
Where it is not possible to benefit from an IVA because the monthly income is too low there is an alternative. In a limited set of circumstances it may be possible to have a lump sum IVA. In this instance through the sale of an investment or possibly a remortage a full and final settlement can be offered. The following table shows the minimum contribution needed for different debt levels.

Total Debts	One-off Payment
£80,000	£28,000
£70,000	£25,000
£60,000	£22,000
£50,000	£19,000
£40,000	£16,000
£35,000	£14,500
£30,000	£13,000
£25,000	£11,500
£20,000	£10,000

Insolvency Practitioner Fees
Once again the total cost includes any fees which are payable to an insolvency practitioner for the work undertaken

Use our FREE Credit Report to see if you are eligable for an IVA.

IVAs: Main
IVAs: Criteria
IVAs: Considerations
IVAs: Costs
IVAs: Merits