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A good starting point for IVA questions
By charlie2
Good morning I am in the process of researching IVA. Can you confirm how much it will cost? What are my options if I do not have any income? Many thanks
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By Hayden
Hello Charlie2 and welcome

An IVA does not cost anything to start. You should not be charged any up front fee. Once the arrangement is up and running fees are taken from the payments you make towards your debt but these come out of your agreed payment. They are not added as extra. You can read more about this here: What does an IVA cost?

Given this for most people an IVA actually does not cost anything which is one of the advantages.

To answer your second question if you have no income but can get a cash lump sum together (perhaps from friends or family) then you can do a full and final settlement IVA. More details about this option are given here: Full and final IVA
By charlie2
Many thanks for your reply. The lump sum option could be a possibility as my Dad might be willing to help. How much would I need percentage wise of my debt? I owe around £25k :(
By Melissa S
Hi charlie2

If you have no income and no assets your creditors may accept as low as 20% of you total debt in a full and final IVA as they would see that they would be unlikely to receive anything if you were to go bankrupt. If they refused an offer of a lump sum bankruptcy may then be your only choice and they would be aware of this, risking getting nothing.

I would have a look at the article that Hayden gave you a link to for a full and final settlement.

This will help to answer some other questions you may have and of course feel free to ask away on here :)
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By Hayden
Hi Melanieee

No this is not correct. If you start an IVA the IVA company deduct money from the amount you pay each month to cover their costs and fees.

Overall the amount they deduct depends on what you pay into the arrangement. However the minimum would normally be around £2000 - £2500

So if you pay £100 for 5 years this would be £6000. Approx £3500-£4000 of this would go to your creditors. At the end of the arrangement, any debt that remains unpaid they write off. This is how an IVA works.