Setting up the arrangement
Clear and transparent
Fees & costsexplained.
If you enter into an Individual Voluntary Arrangement (IVA), there will be fees and costs involved. We believe it is important that you understand how these work before making a decision.
IVA fees
Your fees are taken fromyour agreed payments.
Your creditors will decide on the level of any fees taken, whilst genuine costs in relation to your IVA may also be charged.
Importantly, fees and costs are not added on top of the monthly payments you make. They are taken from those payments in accordance with the terms approved by your creditors.
No accepted IVA, no IVA fee.
You will only be charged an IVA fee if your IVA proposal is accepted by your creditors.
Individual Voluntary Arrangement
What the fees cover
Once your IVA has been accepted, the fees and costs fall into three main categories.
Managing the arrangement
Supervisor's fees
Running the arrangement
Costs & expenses
01
Before approval
Nominee's fee
The Nominee's fee is the cost of helping you put your IVA proposal to your creditors. It covers the professional costs of the Insolvency Practitioner involved in arranging your IVA.
This includes:
- Collating information about your circumstances, assets and liabilities, and conducting your SIP 3.1 call to determine the most appropriate solution for you.
- Preparing your IVA proposal, setting out the proposed terms of your IVA and providing your creditors with a detailed picture of your financial circumstances.
- Holding the decision procedure with your creditors to reach an agreement on the proposal.
The Nominee's fee is paid in priority to other fees in the arrangement. The fee is requested in your IVA proposal and determined by your creditors.
02
During your IVA
Supervisor's fees
Supervisor's fees cover the work carried out throughout the duration of your IVA. These fees are requested in your IVA proposal and determined by your creditors.
The Supervisor's fees are taken in accordance with the fee basis agreed by your creditors.
If additional assets are realised during the IVA — for example, equity in a property or other realisations — or windfalls are received, such as an inheritance or lottery win, additional Supervisor's fees may be payable from those realisations where provided for by your proposal.
The applicable fee arrangements will be detailed within your IVA proposal.
03
Other expenditure
Costs & expenses
Other costs may be incurred in connection with administering your IVA.
For example, depending upon the fees and costs agreed, the IVA may meet certain expenses incurred in administering the arrangement.
The amount payable in fees and known costs will be clearly set out in your IVA proposal based on the circumstances known at the time.
Fees are subject to creditor approval and creditors may require changes before the IVA proposal is accepted.
Other debt solutions
Other fees to be aware of
Costs and charging structures vary depending on the debt solution involved.
Bankruptcy£680
There is currently a £680 fee to submit your own bankruptcy application in England and Wales.
The application is made online. The fee can be paid in instalments, but it must be paid in full before the application can be submitted.
Bankruptcy information on GOV.UKDebt Relief Order£0
There is currently no application fee for a Debt Relief Order in England and Wales.
A DRO application must be made through an approved debt adviser who will check that you meet the eligibility criteria.
DRO information on GOV.UKDebt Management PlanVaries
Any fees charged for a Debt Management Plan depend upon the DMP provider.
Your Debt Advisor does not administer or provide advice solely relating to Debt Management Plans. Where appropriate, we may refer you to an authorised third party.
Read about debt solutionsBefore making a decision
Understand the full implications.
May not be suitable in all circumstances. Fees and disadvantages may apply, read here. Your credit rating may be affected.
The appropriate solution depends on your individual financial circumstances. Our team can explain the options and their implications before you make a decision.
Speak to our team
Have a question aboutfees or your options?
Request a no-obligation callback for an informal discussion with a member of our team.