Who pays the IVA fees?

IVA fees are based on a standard fee structure that everyone in the industry must adhere to.

The fees are paid by your creditors to your Insolvency Practitioner (the person that manages the IVA process on your behalf) out of the money that you contribute each month. Essentially, your creditors are agreeing to accept less money back in order to pay your IP (this is why there’s no such thing as a cheaper or better IVA; even if your IP charged lower fees, the difference would go to your creditors, not to you).

The only exceptions to this are if you have a significant windfall during the IVA and are able to pay back your debts in full or if your IVA fails. In these circumstances, your creditors may require you to contribute an amount to cover fees on top of your debts.

There is a more detailed explanation of how fees work here.

You can read more about IVAs and whether they are suitable for your situation in our IVA section.

Debt Advice Foundation is a registered UK charity offering free, confidential support and advice on any aspect of debt, including IVAs. Our helpline advisors are available Monday to Friday 8am to 8pm and Saturday 9am to 5pm on 0800 043 40 50.