IVAs · 4 min read
IVA fees explained: what an IVA really costs
IVA fees are usually taken from your monthly payments rather than paid upfront. The nominee and supervisor fees, how much of your payments go to fees, what to ask before you agree, and when an IVA isn't good value.
- Fact-checked
- Against official sources
- Last updated
- Next review due
- April 2027
- Applies to
- England and Wales
- Sources
- 3 listed on this page
Independent guidance, not a government service. This page is general information about the law in England and Wales, not financial or legal advice. Debt solutions have fees, risks and consequences. For free, impartial advice, contact MoneyHelper or a debt charity.
The short answer
Most IVAs have two main fees: a nominee fee for setting up the proposal and a supervisor’s fee for running it. They’re usually taken from your monthly payments, not paid upfront, and over five or six years they often add up to several thousand pounds. That money reduces what your creditors receive. Always get a written breakdown of fees before you agree, and compare with free options.
The fees in an IVA
Nominee fee
The nominee is the insolvency practitioner who reviews your situation, prepares the proposal and puts it to your creditors. Their fee for this work is usually paid from your first few months of payments, and only if the IVA is approved.
Supervisor’s fee
Once approved, the insolvency practitioner becomes your supervisor. They collect your payments, carry out annual reviews and pay your creditors. Their fee is usually a percentage of the money they collect, so it’s spread across the life of the IVA.
Other costs
There may also be costs for things such as:
- registering the IVA on the Individual Insolvency Register
- valuing your home, if you’re a homeowner
- extra work if the IVA needs to be varied
Creditors vote on the proposal, which includes the fees, so the fees must be set out in it.
How fees affect you
Because fees come out of your payments, they don’t usually increase what you pay each month. But they do mean:
- less of your money goes to your creditors, so less debt is repaid
- the IVA must run long enough for fees to be covered
- if the IVA fails, fees already taken are usually not refunded
Questions to ask before you agree
- What are the nominee and supervisor fees, in pounds and as a percentage?
- How much of my total payments will go to fees, and how much to creditors?
- Are there any upfront fees? (Be cautious of anyone asking for money before the IVA is approved.)
- What happens to fees if my IVA fails?
- Have you explained all my options, including free ones like a DRO or a free debt management plan?
- Is the firm advising me paid by the IVA provider, and how?
When an IVA isn’t good value
- Small debts: fees can take a large share of your payments.
- Very low spare income: a free Debt Relief Order may write off debts without fees.
- Temporary problems: if your income will recover soon, a short-term arrangement may be better.
- Debts you could repay in full: a free debt management plan from a charity costs nothing.
Read is an IVA a good idea? and is debt help really free?
Frequently asked questions
Do I have to pay IVA fees upfront?
Usually not. Fees are normally taken from your monthly payments once the IVA is approved.
Can IVA fees go up?
The fee basis is set out in the proposal your creditors approve. Extra fees may arise if the IVA needs to be varied, so ask about this.
Who regulates IVA fees?
Insolvency practitioners are licensed and regulated by professional bodies overseen by the Insolvency Service. Debt advice firms are regulated by the FCA.
Sources
How we wrote this article
- Research: written from primary sources such as legislation.gov.uk, GOV.UK and the Insolvency Service, then fact-checked by a second member of our team. The sources are listed above.
- Checked: last checked on . Next review due April 2027, or sooner if the rules change.
- Scope: applies to England and Wales. If you live in Scotland or Northern Ireland, read our Scotland and Northern Ireland guide. It is general information, not personal advice.
- Independence: we are not a government website or service, and we are not connected to any council, court or enforcement company.
- Money: we may receive a fee if we introduce you to a debt advice firm. This doesn't change what we write. How we're paid.
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