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How much does an IVA cost?

  • There is no application fee; it is entirely free to apply for an IVA with Money Advice.
  • All our advice and support during the IVA application is completely free of charge.
  • No upfront fees are required, and in the unlikely event that your IVA 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.

Check if you qualify

A typical example of an IVA

This example significantly reduced the client’s total debt by 57%.

*Example IVA figures are based on average Money Advice client 2021.

  • Affordable payment
  • Debt reduced by £10,480
  • We manage your creditors
  • Debt-free in 60 months
Loan £7,000
Overdraft £1,220
Credit Card £1,000
Credit Card £9,000
Total Owed £18,200

Your monthly payments:


Before an IVA



After an IVA


About the fees

IVA costs

We will only charge you a fee if your Individual Voluntary Arrangement (IVA) 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:

  • A nominee’s fee
  • Supervisor’s fees
  • Costs/expenses
debt and mental health

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 in order to bring your IVA to a successful conclusion.

The advice 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 IVA’s. Still, as one of the UK’s leading providers, we promise excellent service, and we will ensure everything from considerations to fees are explained 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 £7,740 towards an IVA, which includes any costs, and once paid, the client will be completly debt-free.

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

  • Preparing your IVA proposal – which sets out the proposed terms of your IVA 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 paid first before any payments are made to your lenders.

The Supervisor’s fees cover the ongoing work involved in running your IVA and are calculated as a percentage of “realisations”: typically, it is charged at 15–18% of any money received by the Supervisor and distributed to your lenders, such as your monthly contributions, any assets (e.g. the equity in your property, successful PPI misselling claims) and windfalls (e.g. an inheritance) that you receive during the term of your IVA.

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 it is accepted, by your lenders.

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 – £1,1170
  • 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 each month. To help explain how an IVA works, we have included this IVA Example above. 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 2438

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Money Advice UK help over over 5,000 people every year

Our team of experts help thousands of families every year across the UK get their finances back on track.

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

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