IVA Individual Voluntary Arrangement – Pros and Cons – FAQs

How do the IVA fees get paid?

As soon as you decide to proceed with an IVA then your payments to creditors cease and contributions towards your IVA start. The amount you pay will be based on what you can afford and reviewed on an annual basis.

The fees we will charge you for putting together and supervising your IVA are included in the monthly payments that we agree between us you can afford to pay into your IVA each month and there are no additional hidden charges.

We will charge fees for our Insolvency Practitioner acting as the nominee and as the supervisor and a separate fee is payable for the Insolvency Practitioner's work in each of these roles. Charges will also be made for additional necessary out of pocket expenses, however the Creditors will determine these fee’s when they approve your IVA.

The nominee fee is a fixed fee depending on the complexity of the IVA but typically is between £1,000 and £2,000. This is for the pre-appointment work in setting up your proposal to your creditors. Once the creditors have voted to approve your IVA. In almost all cases these fees are deducted from your monthly contributions and will not be in addition to them.

The supervisory fees are normally capped by creditors at 15% of realisations and are drawn monthly from the monthly contributions. This is for post-appointment work in maintaining your IVA until the IVA is concluded.

It takes around 6 - 8 weeks to set up an IVA and during this period you will commence your monthly contributions into your IVA. It is likely that by the time the IVA is approved, you will have made one to two contributions which will be used as part payment of the Nominees fees.

(If creditors reject the IVA proposals we do not seek to recover the balance of the Nominee’s fee from you). All fees will be discussed in detail with you prior to any plan being put in place.

*Example