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The Role of the IVA Supervisor
Once your IVA is approved by creditors, the Supervisor takes over. They manage your arrangement for the full term - here is everything they do and what you can expect.
Who Is the IVA Supervisor?
The Supervisor is a licensed Insolvency Practitioner who manages your IVA from the date of approval until completion. They are almost always the same person or firm who acted as Nominee during the setup phase.
The Supervisor's role is defined by the Insolvency Act 1986 and the IVA Standard Conditions. They have legal duties to both you and your creditors - they must act fairly, in the interests of the arrangement as a whole.
Day-to-Day and Ongoing Responsibilities
Regular duties
- Collects your monthly IVA payment
- Distributes funds to creditors per the IVA terms
- Handles all creditor correspondence on your behalf
- Maintains the financial records for the IVA
- Issues annual progress reports to creditors
Periodic and annual duties
- Conducts annual reviews of your income and expenditure
- Proposes variations if your circumstances change significantly
- Assesses any windfalls and applies the windfall clause
- Manages the equity review in year 5
- Issues your completion certificate when the IVA ends
The Annual Review
Every 12 months, your Supervisor will conduct a formal review of your financial circumstances. This is a mandatory requirement of your IVA. Reviews typically cover your current income, essential expenditure, household changes, and any windfall receipts.
If your income has increased, the 50% rule typically applies: half of any net income increase above a threshold (often 10% of your current payment) is added to your monthly contribution.
Variations to the IVA
Life changes over 5-6 years. If your circumstances shift significantly, your Supervisor can propose a variation. Common variations include payment reductions, payment breaks, term extensions, early settlement, and adding an omitted creditor.
Most variations require 75% creditor approval by value, though minor variations can sometimes be made at the Supervisor's discretion.
Supervisor Fees
The Supervisor charges an ongoing fee - typically 15-20% of all funds received. This is deducted from your monthly contributions before distribution to creditors. The fee is agreed in the original proposal and cannot change without creditor consent.
At the End of Your IVA
- 1Supervisor calculates the final creditor distribution
- 2Remaining funds distributed to creditors on a pro-rata basis
- 3Final accounts filed with the relevant regulatory body
- 4IVA Completion Certificate issued to you - formal written confirmation that the IVA is finished and all included debts are written off
- 5Individual Insolvency Register updated to show the IVA is complete
- 6Credit reference agencies notified of the completion date
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This information is for general guidance only and does not constitute financial or legal advice. An IVA is a formal insolvency solution - fees apply and your credit rating will be affected. Seek independent professional advice before making any decisions.