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How much does an IVA cost?

  • There is no application fee when applying for an IVA with Money Advice.
  • All information and support we provide during the IVA process is completely free of charge.
  • No upfront fees are required; if your IVA application is rejected, there will be no charge.

If you decide an IVA is the best option, we will put together a proposal to your creditors free of charge, and full details of all costs will be included in your IVA proposal.

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A typical example of an IVA*

  • Personal unsecured debt: £21,000
  • Number of lenders: 5
Loan £10,000
Overdraft £1,000
Credit Card(s) £7,000
Council Tax £1,000
Store Card(s) £2,000
Total Owed £21,000

Your monthly debt repayments:






*These figures are based on the averages across all IVA's arranged for customers in 2023. We assess each customer individually based on their circumstances and payments to the IVA are based on what is realistic and affordable.

IVA costs

What will I pay for an IVA?

At Money Advice, we never charge you for any consultations with us – our support is free of charge.

You will only pay your first penny if your creditors accept your Individual Voluntary Arrangement (IVA), and your monthly payments cover all IVA costs and fees.

During your free consultation with us, we will gather details about your financial situation so that we can decide on a figure that works for you, together. For an idea of what you might pay for an IVA and how much you could write off, try using our free online IVA calculator.

IVA Calculator
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IVA Fees

What fees are involved in an IVA?

All fees are paid out of – not in addition to – your regular, affordable monthly payments. Once your creditors accept your IVA, the costs involved are:

Nominees Fee

This fee covers our professional costs and charges for arranging your IVA, including:

  • Preparing your IVA proposal, which sets out the proposed terms and provides your lenders with a detailed snapshot of your finances.
  • Organising the creditors’ meeting, in which lenders can request changes to the terms of your IVA.

It will typically be between £1000 and £2700 and is often capped to an amount equal to your first 4-6 months’ IVA payments.

The Nominee’s fee will be covered before any payments are made to your lenders.

Supervisors Fee

This covers the administration work involved in running your IVA and is calculated as a percentage of the money you pay back. Typically, it is charged at 15–18% of any money being paid back. It covers:

  • Ongoing costs, such as your monthly
  • Annual Reviews of your IVA
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Explaining IVA costs & fees

In most cases, the IVA fees are paid by your creditors because they allow the fees to be drawn from the money you pay into your IVA.

If your situation improves during your IVA to the point where you can afford to repay your debts in full, say through a windfall, then you would also be obligated to pay the IVA fees to bring your IVA to a successful conclusion.

The help we give is free, and there is no obligation to sign up for anything after your initial telephone consultation. Only when your creditors have accepted your IVA are you expected to start making payments.

Please note all Insolvency Practitioners have costs and fees for administering IVAs. Still, as one of the UK’s leading providers, we promise excellent service and will explain everything from considerations to fees clearly and adequately.

You will be required to agree to the premise of our fees as part of the application process, and full details will be included in your IVA proposal.

Our average client pays back £8,880 over 60 months towards an IVA, including all costs. Once paid, the remaining debt is written off, and clients will be completely debt-free.

We are also entitled to claim back the cost of certain expenses (such as postage, insurance, etc.) incurred directly in connection with the running of your IVA.

Our fees will be set out in your IVA Proposal. They must be approved and may be changed before your lenders accept it.

These are the typical total fees charged for an IVA based on a client contribution of £150.00 per month.

  • Nominee’s fees – £1,000
  • Supervisor’s fees – £1,170
  • Supervisor’s costs – £800

*An Individual Voluntary Arrangement is a formal debt solution that can help you deal with your unaffordable debts. In an IVA, your debt repayments are usually lowered to an amount you can afford to pay monthly. We have included this IVA Example above to help explain how an IVA works. Fees may vary depending on your circumstances. If you would like to know more about an IVA, please contact us at Money Advice Ltd on 0333 242 0013

IVA payments cover fees first, followed by contributions towards your debts, which is something worth remembering if your IVA were to fail.

Your debt level, therefore may remain the same or similar if your IVA fails early on.

Start by finding out if you qualify by answering the below questions

Money Advice help over 3,000 people in the UK every year

Our team of experts help thousands of families get their finances back on track with an IVA.

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Is an IVA right for you?

We can discuss your eligibility for an IVA

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Prefer to speak later?

We will offer guidance, support and a solution.

*To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.