IVA Fees & Costs Involved | Charges to Enter an IVA IVA Fees & Costs Involved | Charges to Enter an IVA

IVA Fees

When someone enters an IVA they are often told they will “write of debts” or “only repay a percentage of debt” but, in reality, the fees are one of the most important elements and should be fully explained too.


If you are considering entering an IVA you should be made aware of the fees which are applicable to the solution. Every insolvency practitioner charges fees for administering an IVA, however, these can vary. There may be setup costs, a fee for proposing the IVA and ongoing management costs. How and who pays these costs is what many people struggle to understand.


There are a number of organisations that don’t charge for debt advice or to setup an IVA and instead will solely charge the nominee and supervisory fee.

How IVA Fees Are Paid

When someone enters an IVA they make a monthly contribution which is collected by the insolvency practitioner managing the debt solution. The insolvency practitioner has the responsibility, among others, to distribute the funds to creditors throughout the IVA.


The IVA fees are taken from this monthly contribution and are already accounted for when putting forward the proposal to creditors before it starts. Written within the proposal will be the fees the insolvency practitioner will retain for the creditors, and you, to review.


In most IVA debt solutions, people only repay a percentage of the money they owe and the rest is written off. As a result, because the insolvency practitioner in the IVA retains a percentage of the money for their services the amount of debt being written off will increase.


IVA Fees After Repaying Full Debt


There are some instances in an IVA where people will repay all of the debt they borrowed, along with the fees and charges of the insolvency practitioner. This can happen when the person in the IVA comes into money (e.g. inheritance, lottery win etc). Any disposable income a person has must be paid to the IVA within the period of the solution.



If a person in an IVA comes into money then this must be retrieved for the benefit of the creditors. If the debt and fees were to be repaid early then the IVA would potentially be closed quicker than the original proposal outlined.


IVA Fees Explained

We have tried to outline an example of the fees you may have in a typical IVA


Amount owing at the beginning of the IVA – £31,000
Disposable Income – £300 per month

Nominee fee – £1,000

Supervisor fee (over the course of the IVA) – £2,475

Expenses – £290

Total paid over 5 year IVA – £18,000

Total paid to creditors – £13,235 (43%)

Amount of debt written off – £17,765 (57%)


The fees involved in an IVA are broken into three, these are


Nominee fee


This is to cover the cost of putting forward the IVA proposal by sending letters to creditors, gathering paperwork and drafting the IVA document.


The creditors will have to agree on how much they will accept the nominee fee but usually it varies between £1,500 to £2,000.


Supervisor fee


This will cover the cost of managing the IVA by collecting payments, changing proposals or re contacting creditors if necessary. The fee is usually 15% of the monthly contributions made to the debts each month.




This will essentially cover any additional cost incurred when managing the IVA such as property valuation, legal costs and much more. When the insolvency practitioner registers the IVA there will also be a charge which is taken back out from the disbursements fee.


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