IVA Fees

There are 2 fees payable to an Insolvency Practitioner for the work involved in an IVA, these are deducted from the money that goes to the creditors (you don't pay them directly). The first fee is the fee charged by the Insolvency Practitioner for setting up the IVA – known as the ‘Nominee’s fee’ and the second fee is the fee charged by the Insolvency Practitioner for administering the IVA typically for a period of 5 years. This fee is known as the ‘Supervisor’s fee’. An example of the fees and how they are charged is set out below. The fees will be fully explained to you before you proceed with your IVA and they will also be disclosed in your IVA proposal which is sent to your creditors.

The important point to note about the fees and costs of an IVA is that the costs are deducted from your agreed affordable monthly payments. In the example below, you will see that no fees or costs will be payable by you in addition to your agreed monthly IVA contributions.

IVA fees examples

Lee

  • Lee owed £27,000 (cards and loans)
  • He agreed to pay 60 payments of £100 over 5 years (£6,000 which was 22.2% of the original)
  • Nominee's fee: £1,900
  • Supervisor's fee: £1,750
  • Lee paid creditors £2,350 over 5 years
  • Creditors received 8.7% of the amount they were owed and wrote off 92.3%

Thomas

  • Thomas owed £20,000 (cards and payday loans)
  • He agreed to pay 60 payments of £120 over 5 years (£7,200 which was 36% of the original)
  • Nominee's fee: £1,900
  • Supervisor's fee: £1,750
  • Thomas paid creditors £3,550 over 5 years
  • Creditors received 17.75% of the amount they were owed and wrote off 82.25%

You will notice that the Nominee's fee and Supervisor's fee is the same in each case. This is because the major lenders and banks in the UK have agreed to pay these fees for IVAs which they approve.

The debt write-off amount for each customer differs depending upon their individual financial circumstances and is subject to the approval by their creditors. A debt write-off of 80% has been achieved by 10% of our customers in the last 12 months. An IVA may not be suitable in all circumstances. Fees apply. Writing off debt with an IVA will affect your credit rating (see our FAQ page).

If your IVA is terminated because e.g. you have failed to pay all the agreed IVA payments, it is likely that the majority of the contributions you have paid will have been used to pay the costs and expenses of your IVA. This will mean that the amounts you owe to your creditors will have reduced by very little. Your creditors will again be able to claim the amounts you owe to them together with interest and charges.