Fees & Information

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If you choose to enter into an Individual Voluntary Arrangement (IVA), there will be fees involved. The level of any fees taken will be decided by your creditors and any genuine costs in relation to your IVA may also be claimed back.

IVA fees

You will only be charged a fee if your IVA is proposed and accepted by your creditors.

All fees are paid out of – not in addition to – your regular affordable monthly payments.

Once your IVA has been accepted, the fees you pay will be:

  • A nominee’s fees
  • Supervisor’s fees
  • Costs and expenses

Nominee’s fees

A licensed insolvency practitioner must act as nominee on an IVA. This fee covers the professional costs and charges involved in arranging your IVA, including:

  • Preparing your IVA proposal – which sets out the proposed terms of your IVA and provides your lenders with a detailed snapshot of your finances, and
  • Organising the creditors’ meeting, in which lenders can request changes to the terms of your IVA.

The Nominee’s fees will normally be £1,900 minus any disbursements paid out on your case.

It is likely the first two payments made will cover these costs in full and from month 3 onwards creditors will begin to receive a % of what you pay each month until the Nominees fee disbursements have been repaid.

Supervisor’s fees

The Supervisor’s fees cover the ongoing work involved in running your IVA and are typically fixed at £1,750 and drawn proportionally over the life time of your IVA.

Disbursement Costs

Disbursements are payments made to third parties involved in your IVA, to cover essentials such as the registration fee that comes with being added to the insolvency register.

There is no available legal aid to assist with the setting up of an IVA, but UK Debt Service don’t charge upfront fees. You won’t have to worry about these fees as these will be deducted from your monthly repayments.

There might also be costs incurred directly in connection with the running of your IVA, such as postage and insurance, which your IVA provider is entitled to claim back.

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.

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.