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How much do IVAs cost?

If you’re finding it hard to repay your debt, an Individual Voluntary Arrangement (IVA) might be the right option for you. An IVA is an agreement between you and your creditors to repay your debts over a set period of time, typically five years. However, there are fees involved, but what are they and how much does an IVA cost?

What fees are involved?

At MoneyPlus, we will never ask you to pay any fees upfront. Instead, they will be covered by your monthly contributions. We will also tell you the fees involved and how they’re calculated before you decide to commit to an IVA. Always check your IVA Proposal and Chair report for the final fees agreed by your creditors.

There are three types of fees involved in an IVA:

Nominee’s fee

The Nominee’s fee goes towards the process of making the IVA agreement between you and your creditors. This involves helping you to prepare your IVA Proposal, providing details of your finances, and organising the meeting with the creditors. We propose a fee of £2,100, although your creditors may sometimes reduce this amount.

Supervisor’s fee

The Supervisor’s fee is the ongoing management and administration work of overseeing your IVA, including your annual review. The fee structure can vary. It’s usually £2,100 but in some cases, this too can be reduced by your creditors. This will be outlined in your IVA Proposal.

We may apply an additional 15% charge on any other asset realisations that may be included in your IVA, such as windfalls.

Disbursement costs

Other IVA costs are known as disbursements, which include a range of miscellaneous costs to maintain your IVA. These can include expenses paid to third parties, insurance, and a registration fee when you register your IVA with the Insolvency Service. If you get any legal advice on your case, that could be charged as a disbursement. If you own property, disbursement costs could include valuations of your property and land registry fees.

Do I still pay fees if my IVA fails?

If your IVA fails, you are typically still responsible for the fees accrued up until the point of failure. The specific terms, including any fees due if the IVA fails, will all be explained in your IVA Proposal. Explore our debt solutions page to see which options could be available to you.

To discover more about how to manage your debt and to receive free debt advice, you can visit www.moneyhelper.org.uk or read about options for paying off your debt.