![\"Insolvency](\"https:\/\/www.nationaldebtrelief.co.uk\/debt-articles\/wp-content\/uploads\/2019\/01\/Fotolia_66795965_XS.jpg\")
<\/figure><\/div>\n\n\n\nIt may come as a surprise to people who find themselves in financial \ndifficulties that there are many reputable insolvency firms and \nindividual insolvency practitioners out there who provide advice and who\n do not charge any upfront fees. However, not all service providers \nbehave in this way. It is important to clarify precisely what will be \nfree and what will not. Best time to do this is at the very beginning. \nIf not satisfied or if the explanations are unclear you can walk away. \nGo to another provider \u2013 and another \u2013 until you are satisfied. Such \nenquiries can be done by phone so you are not going to be embarrassed by\n your lack of knowledge about financial matters.<\/p>\n\n\n\n
A reputable IVA provider will fully examine a debtor\u2019s circumstances \nand investigate all options for a financial solution including an IVA, \nbankruptcy, debt management or possibly debt consolidation and will \nadvise the debtor accordingly. At this stage no fees should be charged. \nIf the debtor decides to proceed with an IVA the nominee will carry out \nthe preparatory work for no charge. If the IVA proposal is rejected at \nthe meeting of creditors, then the debtor has nothing to pay and the \nreputable insolvency firm will receive no fees. If however the IVA is \napproved, the debtor begins to make the agreed contributions, often on a\n monthly basis. The supervisor lodges these funds into a bank account on\n behalf of the debtor and it is from this account that dividends are \npaid to the creditors and the insolvency practitioner can begin to \nrecover fees for work done in relation to the IVA. These fees are \nclearly spelt out in the IVA proposal and already agreed by the \ncreditors. This means that the only payment made into an IVA is the \nmonthly payment and this covers everything. There is no such thing as a \nfree iva.<\/p>\n\n\n\n
In an IVA people repay their creditors as much as they can afford \nwithin a reasonable period of time, often within five years. They know \nthat creditors frequently get little or nothing from bankruptcy. They \nknow that that there is little or no social stigma attached to an IVA. \nFriends, neighbours and even family members do not need to know that \nthey are in an IVA. In bankruptcy, anybody could know.<\/p>\n\n\n\n
Reputable firms who provide IVA services do not charge any upfront \nfees. If they do, best to avoid them. You should pay nothing until after\n your IVA is approved and then all contributions made cover the \nrepayments on your unsecured debts and the professional IVA fees and \ncosts.<\/p>\n\n\n\n