Tips To Choose The Best IVA Company

Tips To Choose The
Best IVA Company

CREATED BY DAVID PRITCHARD

How Do IVA Companies Make
Money?

 The best IVA company is the one that fits your situation perfectly. In terms of
qualities, each company differs from the other. It’s difficult to recommend one
company as the best.

 Ease of setup with the insolvency practitioner
 Cost of fees with the insolvency practitioner
 Confidentiality

Nominee Fee

 This fee applies to the professional costs
and fees of the company for the
organisation of your IVA. It includes:
Preparing your IVA proposal, Organising
the creditors’ meeting. In this meeting,
creditors can request changes to the IVA’s
terms. Generally, the cost is between 1000
GBP and 2700 GBP. The fee structure may
vary from one company to another.

Supervisor Fees

 The Supervisors’ fees cover the continuous
work involved in operating your IVA. It usually
is charged at 15–18% of any money received
by the Supervisor. It also includes any money
distributed to your creditors. Your monthly
contributions, any assets and windfall
acquired during the term of IVA included as
well.

Costs

 Companies are entitled to claim back the
cost of certain expenses like postage,
insurance, etc. and sustained directly in
connection with the running of your IVA.
The amount of fees is determined in IVA
proposals.

IVA Companies To Avoid

 Serious debts are concerning, but what’s
even more frustrating? Wasting time and
money on debt relief scams and bogus
companies. There are several businesses
on the market, but not all worth trying.
Here are some aspects that scam
companies or new companies entail. You
should definitely avoid such companies.

Large Upfront Fee

 When you are looking for IVA companies
to consider what they are offering. Some
companies promise to clear debts and
submit IVA on your behalf and charge a
fee. If the company requests a hefty
upfront fee, you should avoid such
companies.

Warning Signs

 One of the prominent warning signs is
found on the company’s advertisements.
Companies claiming to reduce
payments to creditors by 75 percent
should definitely be avoided. Such claims
are virtually impossible to fulfil. Stay away
from companies that make absurd
claims. They rarely know what they are
dealing with.

Lack Of Business Address

 Many companies contacted through
emails and fliers. Sometimes, the scam
companies will advertise in newspapers.
One of the main warning signs is that the
company operates with only a postal box
address. There is no actual address
whatsoever. All this makes it easier for the
company to remain hidden. You should
avoid such companies at any cost.

License

 An IVA company usually requires a
consumer credit license from the
government. Their IP should have a
background in accountancy or law. They
are licensed to provide insolvency
services.

Failure Rate

 Various IVA firms have a failure rate of
less than 15%. However, others have
over 30%. When choosing an IVA
company, check out their failure rate. If
they have high failure rates, move to
another option.

Thank You