Is it expensive to get an iva

Is it expensive to get an iva

iva advice is   often dealt by  insolvency practitioners who have developed certain skills to do all types of works relating to insolvency problems after obtaining professional qualifications required for this purpose. Administrative workload connected with an iva is not negligible. So number of intelligent and qualified employees employed by such practitioners for helping them in their various activities is often significant.

In addition to paying a good amount as their monthly salary, the insolvency practitioners will have to pay the insurance and regulatory membership and other payments due for iva advice staff. Therefore, iva services are not operated for free, even when they are provided for businesses connected to charity activities, debt assistance and other kinds of  social works.

The main expenditures and time-costs involved in setting up an iva advice is related to the act of providing debt advice followed by setting up of the iva. Fact finding for iva advice takes place through telephonic consultation. A face-to-face meeting will be necessary in the case of self-employed persons. Remaining steps in iva finalization is the provision for written confirmation and preparation of iva documentation.

After completing the above steps required for availing iva's benefits, the paperwork so prepared will be presented to the creditors or their representatives for approving it in their board meeting after studying it in detail.

All works up to this stage are done by the insolvency practitioners prior to the acceptance of the agreement by the creditors. Until this stage, the practitioner is acting as the nominee of the debtor. The insolvency practitioner’s work is to get the iva deal accepted  by both parties  who are the  debtors and  the  creditors in this case. They often charge a”Nominee Fee” for this purpose. The debtor has to pay this fee is often drawn from the monthly payment suggested in the agreement. They are drawn when they become available as per the terms of the agreement.

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