IVA Fees and Costs
If you enter into an Individual Voluntary Arrangement (IVA), there will be fees and costs involved. These are agreed and approved by your creditors as part of your IVA proposal. For clarity, fees and costs are not additional to your monthly IVA payments – they are deducted from the payments you make and distributed in accordance with the approved terms.
Types of Fees in an IVA
You will only be charged fees if your IVA proposal is accepted by your creditors. Once approved, the fees generally include:
- Nominee’s Fee
- Supervisor’s Fees
- Costs and Expenses
1. Nominee’s Fee
The Nominee’s Fee covers the professional work carried out by the Insolvency Practitioner in setting up your IVA. This includes:
- Gathering details of your income, expenditure, assets, and debts.
- Conducting your SIP 3.1 call to confirm the most suitable debt solution.
- Preparing your IVA proposal – setting out your financial position and repayment offer to creditors.
- Organising and holding the creditors’ meeting to seek approval of your proposal.
The Nominee’s Fee is paid first, before any other fees, from the payments you make into your IVA. It is requested in your proposal and approved or modified by your creditors.
2. Supervisor’s Fees
Once your IVA is approved, the Insolvency Practitioner becomes the Supervisor and is responsible for managing the Arrangement for its full term. The Supervisor’s Fees cover ongoing work such as:
- Receiving and distributing your monthly payments.
- Monitoring your income and expenditure.
- Conducting annual reviews and communicating with creditors.
- Managing any changes or variations to the IVA.
These fees are usually taken monthly in line with your regular contributions and are agreed by your creditors at the outset. If assets are realised (for example, from property equity or compensation claims) or if you receive a windfall such as an inheritance, additional Supervisor’s Fees may apply in line with the agreed terms of your IVA.
3. Costs and Expenses
In addition to the above fees, certain costs and disbursements may be incurred in administering your IVA. These can include items such as:
- Postage and stationery.
- Professional insurance.
- Banking and payment processing charges.
All such costs must be reasonable, fully recorded, and in line with the fees agreed by your creditors.
Transparency and Approval
All fees and costs will be clearly detailed in your IVA Proposal based on your known circumstances at the time of drafting. Your creditors will review and approve (or amend) these before your IVA is formally accepted. No additional fees are charged without creditor approval, ensuring complete transparency throughout your Arrangement.