IVA Standard Conditions & Fees

An IVA is a legally binding agreement between you and your unsecured creditors and by law is administered by an Insolvency Practitioner who is professionally qualified.

In an IVA, the Insolvency Practitioner will act as both Nominee and Supervisor and will be paid a fee for acting as both Nominee and Supervisor. The payment of the Nominee’s and Supervisor’s fees and his expenses will be detailed in our Engagement letter and in the IVA proposal. These fees may be calculated either as a percentage of contributions you make; on a fixed fee basis or on a time cost basis. As in most cases, the creditors decide the basis and amount of such fees.


Nominee’s fee

This is a fixed fee to cover the initial work in setting up the IVA and the preparation of the proposals which includes;

  • Drafting the IVA proposal
  • Collecting creditor claims
  • Convening and holding the creditors meeting


Supervisor’s fees

As soon as the IVA is approved the Insolvency Practitioner roles changes and he becomes Supervisor’s who will supervise and maintain your IVA for the agreed term (usually 5 years). In addition, he will regularly review your financial situation but his main duties will be:

  • Preparing and sending statutory reports to your creditors
  • Providing any help or advice with regard to your circumstances over the next five years
  • Agree the level of your debts
  • Making distribution to your creditors in accordance with the terms of your IVA proposal
  • Monitoring and ensuring the IVA runs satisfactorily for you and for the creditors

Fees will be payable from the monthly contributions that you make.

We do not charge upfront fees nor are the fees paid in addition to the voluntary contributions you make. In effect, the fees are taken from the contributions you make towards your IVA.

The following example shows typical fees and payments in an IVA:

  • Based on unsecured debts of £30,000
  • Based on a Monthly contributions of £300
  • Total paid over 60 months £18,000
  • Typical Nominee’s Fee agreed by creditors: £1,500
  • Typical Supervisor’s Fee agreed: £2,475
  • Disbursements incurred: £1,000
  • Pence in the £1 received by creditors: 43.42p in the £1
  • Amount written off on completion: £16,975


Note: If you do not maintain your contributions your IVA may fail leaving you liable for your unsecured creditors where creditors could pursue you for the balance that is outstanding to them.. If at any point during your IVA you feel you can no longer afford the agreed contribution, you must contact your Insolvency Practitioner to discuss the situation.

Contacting us to discuss any payment difficulties you are experiencing or changes in circumstances is essential, IVAs do provide an element of flexibility, you may be allowed to payment break if you come up against unexpected costs (such as essential home repairs), or the IP may be able to request that creditors agree to amended terms that suit your change of circumstances.

IVAs do offer an element of flexibility and should you run into any unexpected difficulty while your IVA is in progress, you should contact your Insolvency Practitioner who can request that creditors agree to amended terms that suit your change of circumstances.


For more information on IVAs, please read the Standard Conditions for Individual Voluntary Arrangements:

IVA Standard Conditions January 2008
IVA Standard Conditions January 2012
IVA Standard Conditions January 2013
IVA Standard Conditions January 2014