Skip to main content

Fees / IVA Explained

If you’re considering an Individual Voluntary Arrangement (IVA), it’s natural to want a clear breakdown of the costs involved. 

How IVA Fees Work

There are usually three types of fees associated with an IVA:

  1. Nominee’s Fee
    This covers the work done in setting up your IVA, including preparing your proposal and liaising with your creditors. It’s typically capped and agreed in advance with your creditors.

  2. Supervisor’s Fee
    Once your IVA is in place, this covers the ongoing management of the arrangement. That includes distributing payments to your creditors, reviewing your circumstances annually, and ensuring everything stays on track.

  3. Disbursements
    These are third-party costs such as software licensing or registration fees.

You don’t pay these fees separately – they’re taken from the monthly payments you make into the IVA. That means your payments are based on what you can afford, not on the cost of running the IVA.

What You Need to Know

  • You’ll never be asked to pay anything upfront.

  • Fees are only charged once your IVA is approved by your creditors.

  • The costs are built into the monthly payment agreed in your IVA proposal.

So, if your monthly payment is £150, that’s all you’ll pay – nothing extra.

Is an IVA Right for You?

Every solution has pros and cons. Here’s a simple overview to help you weigh things up:

Benefits of an IVA

  • One affordable monthly payment based on what you can realistically afford

  • Interest and charges are frozen once the IVA is in place

  • A fixed term, usually five or six years, after which any remaining debt is written off

  • Legal protection from creditors, meaning they can’t chase you for payment or take court action

  • You can keep your home and car in most cases

  • A formal, government-backed solution supervised by a licensed professional

Drawbacks to Consider

  • Your credit rating will be affected for six years

  • You’ll need to stick to a budget and declare any changes in income

  • If your IVA fails, you risk bankruptcy

  • Some assets may be reviewed – especially if you own a property with equity

  • Not all debts are included – student loans, fines, and child maintenance remain payable

Got Questions?

Every situation is different, and it’s important to explore all your options. Our advisors are here to offer confidential, no-obligation guidance. If an IVA isn’t right for you, we’ll point you towards an regulated company for alternative solutions that may suit your circumstances better.