IVA Costs and Fees
IVA costs
What will I pay for an IVA?
An individual voluntary arrangement (IVA) is a debt solution that lets you pay what you can afford towards your debts each month. There are fees, but they are included in your monthly payments.
- There is no charge for advice and support before you set up an IVA
- You do not pay fees if you do not go ahead with an IVA
- Your payments start if your creditors accept your Individual Voluntary Arrangement (IVA).
- Your monthly payments cover all IVA costs and fees and are based on what you can comfortably afford
Don’t forget…
You can contact the IVA team if you need help. Our number is 0161 640 6400 and we’re open Monday to Sunday 8am to 8pm.
For an idea of what you might pay for an IVA and how much you could write off, try using our online IVA calculator.
IVA Fees
What fees are involved in an IVA?
All fees are paid out of – not in addition to – your regular, affordable monthly payments.
- There are no upfront fees
- There are no charges if your IVA is not approved
- Every IVA costs money to set up and run.
If your creditors accept your IVA, the costs involved are:
Nominees Fee
The nominee fee covers 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.
Supervisors Fee
This covers the administration work involved in running your IVA. Typically charged monthly over the lifetime of your IVA. It covers:
- Ongoing costs, such as your monthly distributions to creditors
- Annual reviews of your IVA
- Day to day administration
We deduct these fees from your monthly IVA payment
Apply for IVA advice if:
- You owe £7,000 or more in debt
- Money is owed to two or more creditors
- You have a regular monthly income
Residents in England and Wales have a right to debt help, and several tried and tested solutions can help write off debt, reduce pressure from creditors and freeze interest and charges.
An Individual Voluntary Arrangement (IVA) could be one option that holds the key to your debt-free future.
- DEBT FORGIVENESS
Creditors must legally write off any remaining balance when you complete your IVA. - AFFORDABLE PAYMENTS
Your repayments are based on what you can realistically afford each month. - LEGAL PROTECTION
An IVA stops creditors from chasing you, including bailiffs and legal action. - INTEREST & CHARGES FROZEN
No more rising debt from added fees.
A typical example of an IVA*
| Loan(s) | £5,000 |
| Overdraft | £3,000 |
| Credit Card(s) | £13,500 |
| Store Card(s) | £4,500 |
| Utility Bill(s) | £1,500 |
| Total Owed | £27,500 |
Your monthly debt repayments:
£717
Previous Payment
MONTHLY SAVING £580
£137
New Repayment
DEBT REDUCED BY 78%
*A debt write-off amount of 80% is realistic based on the average figures of IVA clients between April 2024 to April 2025. We assess each customer individually based on their circumstances and payments to the IVA are based on what is realistic and affordable.
Use our free IVA Calculator to see how much you could save with an Individual Voluntary Arrangement.
Dealing with debt can be difficult, so we've broken it down into 3 easy steps.
Speak to a debt specialist
Our friendly, experienced team will explain the IVA process.
Explore your options
There’s no pressure to make a quick decision. Our goal is to help you understand if an IVA is suitable.
Choose your debt solution
Select the best fit for your circumstances and lifestyle.
Check if you qualify
Explaining IVA costs & fees
The IVA fees are agreed 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.
Only if your creditors have accepted your IVA are you expected to start making payments.
Yes, the IVA process is time consuming and technical as it must abide by statutory and regulatory rules. Creditors understand the basis on which fees are charged and are usually happy to approve IVA proposals including the proposed fees.
Full details of fees will be included in your IVA proposal. These fees will be paid out of the contributions you make. It is important to note that if your IVA fails because you do not maintain payments or for any other reason the amount you have paid into your IVA may be used to cover the fees which have been incurred meaning that little or nothing may be paid to your creditors.
Our fees will be set out in your IVA Proposal. They must be approved and may be changed before your lenders.
Our average client pays back £8,880 over 60 months towards an IVA, including all costs. Once paid, the remaining debt is written off.
It is important to note that if your IVA fails because you do not maintain payments or for any other reason the amount you have paid into your IVA may be used to cover the fees which have been incurred meaning that little or nothing may be paid to your creditors.
Your debt level, therefore may remain the same or similar if your IVA fails early on.
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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.
Is an IVA right for you?
We can discuss your eligibility for an IVA
Prefer to speak later?
We will offer support to help you find 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.