The IVA has two stages~:

1. pre approval (up to and including to the meeting of creditors)

2. post approval (after the meeting, through to completion)

During stage one The Insolvency Practitioner (IP) will be called the Nominee and will draft the IVA proposal, and convene the meeting of creditors. He/she will present the proposals to the meeting and report on the outcome of the meeting.

The Nominee will typically complete this work for an agreed fixed fee, plus his/her costs incurred. Details of these will be included in the proposal document.

The level of the fee varies from IP to IP, and some IVA providers require some or even all of this fee to be paid in advance of the meeting, and sometimes in advance of commencing any work at all. Other IP’s will not take a fee unless the IVA is accepted by your creditors.

The fee for work conducted after approval of the IVA is referred to as the Supervisor’s Fee. Typically this will be based upon the time spent by the Supervisor and his/her staff in administering the arrangement. Sometimes this is fixed (or capped) by creditors at the creditors meeting.

In any case the IP will not send a bill to the individual but pay himself/herself from the funds he holding on behalf of creditors, i.e. the monies received into the IVA.