Are There Any Upfront Fees for an IVA?

No Legitimate IVA Requires Upfront Fees

A legitimate, regulated Insolvency Practitioner will never charge you upfront fees before your IVA is approved. If any company asks for payment before your IVA is set up, this is a serious red flag and you should not proceed.

How IVA Fees Actually Work

IVA fees are structured as follows:

• Nominee fee: Charged for setting up and drafting the IVA proposal. This is paid from your first monthly contributions after the IVA is approved — not before.
• Supervisor fee: An ongoing management fee charged for administering the IVA throughout its term. Also paid from monthly contributions.
• Disbursements: Miscellaneous costs (bonding, statutory advertising etc.) also taken from contributions.

All fees must be disclosed in your IVA proposal before you sign. The proposal will show exactly how fees are deducted and in what order.

Red Flags — IVA Scams to Avoid

Be very wary of any company that:

• Charges any fee before your IVA is approved
• Guarantees your IVA will be accepted before speaking to a proper adviser
• Promises to write off all your debts immediately
• Pressures you to sign quickly or offers limited-time deals
• Cannot provide FCA registration or IP licence numbers
• Is not a member of a recognised insolvency professional body (ICAEW, IPA, ACCA)

Verifying an IP's Credentials

You can verify that an Insolvency Practitioner is properly licensed by searching the Individual Insolvency Register or checking the licensing authority's own register. Legitimate IPs are regulated by bodies including the ICAEW, IPA, ACCA, and the Insolvency Service.