Individual Voluntary Arrangement

An individual voluntary arrangement (IVA) is a formal and legally binding agreement between you and your creditors to pay back your debts over a period of time. This means it’s approved by the court and your creditors have to stick to it.

An IVA can be a good debt solution and is only available for individuals or couples with unmanageable debt problems but there are risks to consider.

Before entering into an IVA it is important that you fully understand the advantages & disadvantages of this type of debt solution. These can be found in the Frequently Asked Questions section below or on the homepage of our website here.

Free and impartial money advice is available from the Money Helper, an organisation set up by the Government for people in debt.

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Individual Voluntary Arrangement

How your IVA repayments are calculated

A debt advisor will make a full assessment of your financial circumstances which must be approved by the insolvency practitioner. This could be monthly payments, a lump sum, or a combination of both.

The repayment plan should be based on an amount you can reasonably afford, and the creditors will need to agree it. If you’re making monthly payments the IVA will usually last for 5 years for a tenant or 6 years for homeowners.

Any repayments will be paid directly to the insolvency practitioner. They will then distribute the money to your creditors. Some of this will be kept by the insolvency practitioner to pay their fees.

IVA Costs and Fees

Regardless of who supervises your IVA, there will be fees associated. This is due to the nature of the IVA and the process involved, however the costs and fees involved in an IVA (Individual Voluntary Arrangement) can be worrying for people already struggling with their finances.

How much does an IVA Cost?

We recommend our clients to our Insolvency partner Johnson Geddes, and they do not charge any upfront fees for setting up your IVA. Instead, once your IVA has been approved, any fees will be taken from your agreed monthly payments.

Including your fees within your monthly payments, however, will not affect or increase the amount you pay each month. This is because your creditors agree to a lower repayment to cover these costs. You simply pay the amount agreed in the IVA proposal and your Insolvency Practitioner will distribute the funds to cover the fees and your creditor repayments. If there weren’t any IVA fees you would still pay the same amount each month anyway.

What are the fees and what do they cover?

Nominees Fee

The nominee fee is the cost incurred while assisting you when putting together your proposal to creditors. The Nominee (who is also a Licensed Insolvency Practitioner) will re-confirm your income and expenditure and all the information that we collect when submitting your IVA. They will also consider your assets, discuss with you whether an IVA is right for you, check you meet the criteria and help you put together a proposal that is likely to be accepted by your creditors. An IVA requires a specialist, qualified practitioner to set up the IVA which is why there is a cost. The actual fee largely depends on which practitioner you use and who your creditors are, but it will usually either amount to the value of the first five months of your IVA payments or £1,000, whichever is the greater. This is how Debt Support Direct is funded, we are paid a fee by the insolvency practitioner for pre-qualifying and collating all of the information required at the start of the IVA process.

Supervisors Fee

The Supervisor fee is there to cover the ongoing costs of the IVA and is usually set at 15% of payments into the IVA. This fee is usually paid once the nominee’s fee has been paid in full. Your Nominee will become your supervisor once your IVA is approved and they will be on hand to answer any questions or concerns you may have throughout your IVA. They will also conduct annual reviews to check your income and expenditure is correct and you can still afford your monthly payments.


Disbursements are payments made to third parties involved in your IVA, to cover essentials such as the registration fee that comes with being added to the insolvency register. There is no available legal aid to assist with the setting up of an IVA, but our Insolvency Practitioner partners do not charge upfront fees. You won’t have to worry about these fees as these will be also deducted from your monthly repayments.

In the unlikely event that you find you can pay the full amount of debt owed at any point throughout your IVA, bear in mind that you will then be liable to pay these fees on top of your outstanding debt.

Frequently Asked Questions

It is important that you fully understand all the Pros & Cons of entering into a debt solution like an IVA. Further down this web page we have compiled a list of FAQs’.

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They will explain all your options, so that you can decide which solution works best for you!

Types Of Debts We Help With


Store Cards

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Utility Bills

Frequently Asked Questions

An IVA is a formal insolvency solution that allows you to deal with *unsecured debts that you cannot afford to repay. In an IVA you agree an affordable repayment plan with your creditors (the people you owe money to), which can be a monthly repayment or a lump sum (if you can gain access to it). You usually pay less than what you owe in an IVA and on completion of the arrangement, any remaining debts are written off.

*Unsecured debt refers to debt that is not secured against an asset or protected by a guarantor. This includes debts such as credit cards, store cards, overdrafts, and some loans.

Free and impartial money advice is available from the Money Helper, an organisation set up by the Goverment for people in debt.