An IVA does not have a fixed price. The cost is whatever you can genuinely afford to pay each month after essential living costs, usually over five years (or six years if you have £10,000 or more of equity in your home under the IVA Protocol). Insolvency Practitioner fees are taken out of those monthly payments, so creditors effectively fund the cost rather than you paying anything separately up front. This page lays out the real cost in numbers.
What you actually pay#
You pay one monthly amount, agreed before the IVA starts and reviewed annually. There is normally:
- No upfront fee to start an IVA.
- No separate fee for the introducer or for the proposal preparation.
- No fee at all if creditors reject the proposal. Reputable providers only earn once your IVA is approved.
The single monthly payment is calculated against the Standard Financial Statement — the same affordability tool that lenders, debt charities and Insolvency Practitioners all use. Anything left after rent or mortgage, utilities, food, transport, childcare and other essentials is what’s available for the IVA. If there is very little spare income, a DRO, DMP, bankruptcy or Breathing Space may fit better than an IVA.
Three worked examples#
Example A — £12,000 of unsecured debt, £100 a month for 5 years#
| Item | Figure |
|---|---|
| Original unsecured debt | £12,000 |
| Monthly IVA payment | £100 |
| Term | 60 months |
| Total paid in | £6,000 |
| IP fees and disbursements (typical) | £2,000–£3,000 |
| Distributed to creditors (approx.) | £3,000–£4,000 |
| Debt written off at completion | £8,000–£9,000 |
| Effective write-off | ~67–75% |
Example B — £25,000 of unsecured debt, £180 a month for 5 years#
| Item | Figure |
|---|---|
| Original unsecured debt | £25,000 |
| Monthly IVA payment | £180 |
| Term | 60 months |
| Total paid in | £10,800 |
| IP fees and disbursements | £2,500–£3,500 |
| Distributed to creditors | £7,300–£8,300 |
| Debt written off at completion | £16,700–£17,700 |
| Effective write-off | ~67–71% |
Example C — £45,000 of unsecured debt with home equity, £220 a month for 6 years#
| Item | Figure |
|---|---|
| Original unsecured debt | £45,000 |
| Monthly IVA payment | £220 |
| Term | 72 months (extended for home equity) |
| Total paid in | £15,840 |
| IP fees and disbursements | £3,000–£4,500 |
| Distributed to creditors | £11,340–£12,840 |
| Debt written off at completion | £32,160–£33,660 |
| Effective write-off | ~71–75% |
What the Insolvency Practitioner’s fees cover#
The fees taken from your monthly payments cover three things:
- Nominee fee — preparing the proposal, calling and chairing the creditor meeting, drafting the IVA documentation. Usually a fixed amount taken from the first 4–6 months of payments.
- Supervisor fee — the IP’s ongoing work running the IVA over the 5–6 year term: collecting and distributing payments, performing the annual review, dealing with creditor queries, and issuing the completion certificate. Usually a percentage of payments, taken monthly.
- Disbursements — printing, postage, the cost of registering the IVA on the public Insolvency Register, bank charges on the IVA’s client account.
Under the 2025 IVA Protocol, providers must spell out the total fee structure at the proposal stage, so the figures are transparent before you sign. If a provider can’t or won’t put the fees in writing, that’s a flag worth questioning.
Why creditors agree to such a large write-off#
The numbers in the worked examples often surprise people: 60–70% of the original debt typically written off. The reason is that creditors compare an IVA against the alternative — usually bankruptcy. Under bankruptcy they might recover nothing because most consumer-debt cases involve no significant assets to distribute. An IVA gives them a guaranteed share of regular monthly payments over five or six years, which is materially better than the bankruptcy alternative. That’s why the 75% creditor vote threshold (by debt value) is normally cleared on well-prepared proposals.
What can change the cost mid-IVA#
A few things can move the numbers after the IVA starts:
- Annual review. If your income or essentials change, the agreed monthly payment can be adjusted upwards or downwards. The IP must do this each year and must base it on the Standard Financial Statement.
- Windfalls. Inheritances, bonuses, redundancy, PPI refunds and similar windfalls above £500 must be paid into the IVA on top of normal payments.
- Payment breaks. Up to nine months in total under the 2025 Protocol. Breaks are added to the end of the term rather than reducing the total amount paid.
- Variation request. You can apply to formally vary the IVA — extend the term, reduce the payment, exclude or include a debt — by holding a creditors’ meeting via the IP. There is usually no fee from the IP for this, but creditors must vote.
What an IVA does NOT cost#
- It does not require you to pay a deposit.
- It does not require you to pay before creditors approve the proposal.
- It does not require you to sell your home (under the IVA Protocol, equity of £10,000+ usually extends the term to six years instead).
- It does not require you to give up your bank account, although you should switch to a basic account at a different bank if you currently bank with one of your creditors.
Read next#
- How much is an IVA per month? — the day-one calculation in more detail
- Is an IVA worth it? — the wider trade-off
- How long does an IVA take to pay off? — term length explained
- How do I apply for an IVA? — the application process
Related questions#
- Can I get a loan to pay off IVA?
- Can I get a mobile phone contract with an IVA?
- Can I get monthly car insurance with an IVA?
- Can I keep an IVA secret?
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