This is a cause for concern because, in the right situation, an IVA can be an excellent way of clearing debt and often has advantages when compared to other solutions such as debt management and debt consolidation.
If an IVA proposal is successful, it results in debts being frozen and a certain percentage (up to 90%) of the debt being written off altogether. Furthermore they provide debtors with an affordable way of repaying their debt. They are also advantageous from a creditor’s perspective because they are significantly cheaper than bankruptcy proceedings.
Although different organisations take different approaches to the fee issue, Clear Start (one of the top 10 IVA providers in the UK) takes a very straightforward position on the subject.
They offer independent debt help, support and advice to all UK residents. This service is completely free of charge. They also do not charge any IVA application fees. In fact all debt advice services provided by Clear Start to individuals and households are free of charge.
So where does the company get its funding from? The answer is from creditor and panel partner contributions in order to reimburse the organisation for the costs of advice and processing.
Furthermore, the fees that are associated with setting up IVAs are paid for by the creditors not the debtors. They are taken out of the IVA fund created by the monthly re-payments made by the debtor.
Clear Start’s National Debt Helpline, prides itself on offering an ethical and professional service that people can rely on. The feedback from happy clients and messages posted across the internet are testament to the service that the organisation provides.
You can speak to a specially trained advisor on any debt matters, and with no obligation, simply by calling their freephone number.
Call Clear Start on 0800 138 5445
Visit us at www.clearstart.org
E mail us at info@clearstart.org
For further information about Individual Voluntary Arrangements, please visit IVA Advice Service