An IVA is successfully completed when the applicant pays the number of agreed upon payments into the IVA fund and where it applies, after any required property equity has been released. The Insolvency Practitioner will issue a certificate of completion to the now legal IVA applicant. If any outstanding debts remain at this point, those debts will be written-off.
Having outlined all of that, the mystery remains; who pays the fees? Was it the applicant who paid it from his or her contributions but repaid less of the original and saw more of the original debt written off? Did the creditors stand the cost of the fees by allowing them to be deducted from the IVA fund and then writing off the outstanding balances. We will allow you to make that determination.
Failing To Complete An IVA
It is essential to note that in the event that a IVA applicant neglects to abide by the terms of the IVA, things will become worse. This is largely due to the fact that the initial amounts of money that is deposited into the IVA fund inevitably will be used as the fees for the Insolvency Practitioner and will not be paid to the creditors; therefore, there will not be a reduction in the amount of the outstanding debt . Failing to abide by the terms of the IVA will result in the write off of the debt not materialising.
Additionally, the possibility exists that the creditors may tell the Insolvency Practitioner to make a petition for the bankruptcy of the IVA applicant and there will be no refunding of any fees paid to the Insolvency Practitioner or creditors up to that point.
IVAonline.co.uk is very distinct from the mainstream as it relates to us being an IVA provider. You will never be charged a set up fee for the preparation of the IVA application. We pledge that if an IVA is not successfully arranged on your behalf, after stating that we are of the belief that we can get an IVA, you will not be required to pay any fees or associated charges.
However, there are other IVA companies which will charge you fees even if your IVA application failed. They do this by billing you for the preparation work that they carried out on your behalf. You are expected to pay these fees even if you were not approved for an IVA. In a situation like this, it is possible that you would be required to pay 3 to 4 months IVA contributions. If these monthly repayments are £350 each month, you could be billed as much as £1,400. This is an indication that it is essential to get representation from the right IVA company.