IVA fees – SFS
________________ will charge a fee for their services if you decide to go ahead with an IVA. There will be no charge for our advice if you choose not to go ahead with an IVA. SFS is not an insolvency practice and, with your approval, following advice from your SFS adviser, if you choose to go ahead with an IVA then we will pass a completed fact-find to an Insolvency Practitioner who will then present a proposal to your creditors. The Insolvency Practitioner will pay a fee to SFS for the work we carry out prior to you making the IVA proposal. This fee will be approximately £800-1,000. You are not required to pay SFS any sums over and above the sums paid by your Insolvency Practitioner. Please click here to read our FAQs for further information relating to the IVA process.
Your Insolvency Practitioner will also charge a fee for their services. This fee will be split between their Nominee and Supervisor function. All fees and outlays incurred during the administration of your IVA are met from the realisations made from your income contributions and/or assets and are exempt from VAT.
Your Insolvency Practitioner will provide further information regarding their fees and the work they are required to do before you agree to proceed with an IVA.
Note: Should you proceed with an IVA, it is essential that you maintain your agreed monthly contributions. If at any point during the term of your IVA you feel you can no longer afford the payments agreed, you must contact your Supervisor or their staff to discuss.
Contacting your Supervisor to discuss any payment difficulties you are experiencing or changes in circumstances is essential, IVAs do provide an element of flexibility, you may be allowed to have a payment break if you come up against unexpected costs (such as essential home repairs) or your Supervisor may be able to review and amend your contribution to suit your changed circumstances.
If you fail to keep up with your agreed contributions and fail to contact your Supervisor to discuss, your IVA may fail, leaving you liable for payment of your unsecured debts at their original contractual payment level and in some cases you may be made bankrupt by your Supervisor for failing to comply with the terms of your IVA.
To find out more about managing your money and getting free advice, visit Money Advice Service, an independent service set up to help people manage their money.