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Effective from December 7th, 2018

If you enter into an Individual Voluntary Arrangement (IVA), there will be fees involved.

Your creditors will decide on the level of any fees taken, while any genuine costs in relation to your IVA may also be claimed back.

Individual Voluntary Arrangement fees

You will only be charged a fee if your IVA proposal is 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: 

Nominee’s fee

The nominee fee is the cost for helping you to put the IVA proposal to your creditors and covers the professional costs and charges involved in arranging your IVA, including: 

Usually this fee will be between £1,000 and £3,000 and is often capped to an amount which is equal to your first 4-6 months of IVA payments.

The nominee’s fee is always paid first before any payments are made to your creditors.

Supervisor’s fees

The Supervisor fee(s) is the cost of covering the ongoing work involved in running your IVA.

Generally, the fee is charged at around 15% of any money received by the supervisor and then distributed to your lenders.

This encompasses your monthly contributions, any assets (e.g. the equity in your property, successful PPI mis-selling claims) and windfalls (e.g. an inheritance) that you receive during the term of your IVA.

Costs

There may also be other costs incurred in connection with the running of your IVA.

For instance, your IVA provider is entitled to claim back the costs of postage and insurance.

How much you will pay in fees will be clearly set out in your IVA proposal, although they must be approved by your lenders and may be changed before the proposal is accepted. 

Average fees

The average fees paid are currently:

Nominee’s fees              £1,209

Supervisor’s fees           £1,597

Supervisor’s costs         £900