When managing your Individual Voluntary Arrangement (IVA) to prevent bailiff actions, it's crucial to comprehend the associated costs. These costs cover the preparation of your proposal and the administration of the arrangement throughout its typical duration, which is usually around 5 years. It's worth noting that these costs are not an additional burden; instead, they are deducted from the monthly contributions you make into your IVA.
The charges associated with the preparation of your proposal to creditors and the organisation of the creditors' meeting for voting approval are known as nominee's fees. Once your arrangement is approved, the ongoing management fees are referred to as supervisor's fees. Additionally, there are some essential expenses involved in running the arrangement, such as registration fees and mandatory statutory insurance, which are categorised as disbursements.
For our specific IVA arrangements, the cumulative cost for these services typically amounts to £3,650, although this figure may be subject to adjustment based on the creditors' vote for approval. Regardless of the final cost calculation, it's important to understand that these expenses will be covered from the agreed-upon monthly payment plan, ensuring a transparent and manageable process to help you stop a bailiff from taking action.
Your Individual Voluntary Arrangement (IVA) will be officially registered and will remain visible on your credit file for a period of six years from the date it gains approval. This record will persist for an additional 12 months after the conclusion of your IVA. During this time frame, you may encounter challenges when attempting to secure further credit. To access credit exceeding £500, it is imperative to seek written permission from your insolvency supervisor.Details of individual voluntary arrangements are publicly accessible through the Individual Insolvency Register. While it's unlikely that casual observers will come across this information, it remains available to those who actively seek it out. It's important to note that the impact of your IVA on your credit rating is influenced, to some extent, by your credit history prior to initiating the IVA.