Fees & Information
If you choose to enter into an Individual Voluntary Arrangement (IVA), there will be some fees involved. Your creditors will decide these fees, but any genuine IVA-related costs may also be claimed back.
What will I pay for an IVA?
Understanding the costs and fees involved in an Individual Voluntary Arrangement, alongside how these will be paid, can be important. For some individuals, this may impact whether you decide to move forward with the application process.
The main thing to note is that while fees are involved, these will only start once you’re accepted to an IVA. So until you choose to progress to the monthly payments, you won’t need to pay any fees or costs. Any prior support or advice related to your IVA will also be provided fee-free.
Any IVA-related fees will be explained and fully detailed in your IVA proposal. If creditors accept your IVA and you choose to proceed, your monthly payments will then begin. These payments cover all associated IVA costs and will be worked out based on your personal finances and what you can comfortably afford.
IVA fees
After your IVA is accepted and you’ve decided to move forward with it, you’ll have your IVA fees decided and then explained by your creditors. These fees are included in your monthly payments rather than being an additional payment.
Nominee’s Fees
A licensed insolvency practitioner must act as a nominee on an IVA. This fee covers the professional costs and charges involved in arranging your IVA, including:
- Preparing your IVA proposal: The proposal sets out the terms of your IVA and provides your lenders with a detailed snapshot of your financial situation.
- Organising the creditors’ meeting: During this, lenders can request changes to the terms of your IVA.
For many people with an IVA, the nominee fee may be covered in full by the first two payments. From the third month onwards, creditors will begin to receive a fixed percentage of your monthly payments until the nominee’s fee disbursements have been repaid.
Supervisor’s fees
The supervisor’s fees cover the ongoing work involved in running your IVA. This fee will be drawn proportionally from your monthly repayments over the duration of your IVA, typically once your nominee fee has been fully paid.
Disbursement costs
Disbursements are payments made to third parties involved in your IVA to cover essentials such as registration fees for being added to the insolvency register, system maintenance fees and insurance.
While there is no available legal aid to assist with setting up an IVA, you will not be charged upfront fees. You won’t have to worry about these fees since these will be deducted from your typical monthly repayments.
Additional costs such as postage and insurance might also be incurred directly in connection with running your IVA. These are the types of costs that your IVA provider might be entitled to claim back, however, these fees won’t be refunded if you pay your creditors in full during the term of the IVA or if the IVA fails.
How much you will pay in fees will be clearly set out in your IVA proposal. They must be approved by your lenders and may be changed before the proposal is accepted.
How much are IVA fees?
IVA fees may differ depending on your situation, however, the average fees paid by our clients are currently:
- Nominee’s fees: £1,650
- Supervisor’s fees: £1,750
- Supervisor’s costs: £250 (Disbursements)
All costs and fees are agreed by creditors before the approval of your IVA and creditors may request a different fee structure, but all this will be discussed before the approval of your IVA.
IVA fees – Your questions answered
Who pays the IVA fees?
IVA fees are paid out of the money you contribute to the agreement each month which means that the person who enters into an IVA is the one paying the fees. These fees are pre-agreed by your creditors.
How will I pay IVA fees?
IVA fees are typically covered by your monthly repayments. All associated costs and fees should be explained to you, alongside the proportion of your payments that will be going towards these.
Do all IVA companies charge fees?
Yes – all IVA companies charge fees which will be detailed in your IVA proposal. This covers the technicalities and time required to run the IVA.
Is there an application fee for an IVA?
There are no fees or costs involved in applying for an IVA. The costs will only begin if your creditors agree and you decide to proceed with it.
If you’re struggling with debt management, speak to a member of our team at UK Debt Service. We may be able to help you understand all options available based on your individual circumstances.
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