Our Service & Fees

IVA Fees and Costs

Fees are only charged if an IVA is subsequently approved by your creditors and our fees are only taken from your monthly payments or asset realisations paid into your arrangement. Depending on the terms of the IVA and creditor agreement, fees are normally drawn throughout the period of the IVA as a percentage of the payments made by you, which means the balances owed to your creditors are start to reduce. In some cases, creditors may amend the terms of the IVA so that we are not required to make payments to them until the Nominees fees and disbursements have been repaid.

In an IVA there are three different types of cost charged:

1. Nominee's Fee

Written Complaints:

This fee covers the setting up and preparation of your IVA. This includes assessing your current financial situation and your repayment offer to creditors, issuing the Proposal to your creditors, the administration and facilitation of the creditors’ decision process used to consider the IVA, and any negotiations with creditors during this process.

The Nominee’s fee is generally £2,400 but may be reduced by creditor modification. It's not usually less than £1,000.

2. Supervisor’s Fees

These fees are charged for the ongoing administration of the IVA which includes collecting and distributing your monthly repayments, dealing with any queries raised by you or your creditors, completing an annual review of your financial circumstances, reporting annually to you and your creditors about the progress of the IVA, and dealing with the closing formalities.

The Supervisor’s fee is generally based on a percentage of any monies paid into the arrangement and ranges from 15 – 20% of the payments made. In some cases a flat fee may be charged.

3. Disbursements

These are costs paid by the IP to third party companies for software licences, insurances, and registrations that are required to administer the arrangement. These may also include payments made for the provision of specific services required under the IVA.

Typically the disbursements of the arrangement range from £1,268 to £1,410 per case.

Below is a typical example of the costs and fees charged in an IVA, where the client has £40,000 of unsecured creditors and is making monthly repayments of £190 in the IVA (£11,400 in total over 60 months)*.

Total funds in the IVA: £11,400
The Nominee’s fee: £2,400
The Supervisor’s fee**: £2,280
The Supervisor’s costs: £1,268
Total fees & costs: £5,948
Total repaid to unsecured creditors: £5,452
Total written off by unsecured creditors: £34,548 (86%)
*This example is for illustration purposes only and actual repayment amounts and debt write off will be dependent on individual financial circumstances.
**20% of further monthly payments once the Nominee’s fee has been satisfied