An IVA does not have a fixed price. The contribution is based on what you can afford after essential living costs, usually over five years (or six years where the 2025 IVA Protocol’s home-equity provisions apply). Insolvency Practitioner fees are deducted from the agreed payments before money is distributed to creditors. This page explains the cost using clearly labelled illustrations.
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.
- The proposal must explain all fees and disbursements before you agree.
- Pre-approval costs can vary. Ask what, if anything, would be payable if creditors reject the proposal, and get the answer in writing.
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#
These examples use assumed contributions and fees for illustration only. They are not a quote, prediction or evidence of a typical write-off. A real proposal must be based on verified circumstances and may produce a very different result.
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 |
| Assumed IP fees and disbursements | £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 |
| Assumed 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 |
| Assumed 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, arranging the creditor decision process and drafting the IVA documentation. The proposal must state the amount and how it will be paid.
- 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 may approve an IVA#
Creditors compare the proposal’s expected return with the likely return from alternatives such as bankruptcy. Of the creditors who vote, at least 75% by debt value must approve the IVA. Approval and completion are not guaranteed, and there is no standard percentage that will be written off.
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 ask the IP to vary the IVA, for example by changing payments or the term. The proposal should explain any related fee and when a creditor vote is required.
Costs and terms to confirm before signing#
- Check whether any fee or deposit is payable before creditor approval.
- Check the nominee fee, supervisor fee, disbursements and the order in which they are deducted from payments.
- If you own a home, check the exact equity clause and whether the protocol’s six-year term applies.
- If you bank with an included creditor, ask about set-off and whether you should move to a basic account elsewhere.
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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