IVA Fees and Your Credit Rating

How much does an IVA cost?

The fees cover the preparation of your IVA proposal and the administration of the arrangement throughout its term.

Creditors may change the fees when they vote on whether to approve your IVA. Any approved fees are taken from the money paid into the arrangement.

What the fees include

• Nominee’s fee: preparing your proposal and arranging the creditors’ decision procedure.
• Supervisor’s fee: administering the IVA after it has been approved.
• Disbursements: necessary costs such as registration and statutory insurance.

Will an IVA affect my credit rating?

Yes. An IVA will be recorded on your credit file for six years from the date it starts. During this period, obtaining new credit may be more difficult and borrowing may be offered at a higher interest rate.

Your IVA will also appear on the public Individual Insolvency Register while it is active. The entry normally remains on the register for up to three months after the Insolvency Service is notified that the IVA has ended.

Taking further credit

Your IVA proposal will contain restrictions on taking further credit. You may need the written permission of your Insolvency Practitioner before borrowing above the amount stated in your IVA terms.

After the IVA ends

When the IVA is completed, you can ask the credit reference agencies to update the accounts included in it. The IVA itself will normally remain visible until six years have passed from its start date.