debtor's credit rating as bankruptcy. Usually a debtor's credit rating is already poor before an IVA or bankruptcy is considered however. Both bankruptcy and an IVA will stay on a debtor's credit file for six years from the start of the IVA or bankruptcy. Fees and Disbursements There are two separate fees payable in an IVA. Both of these fees are paid as part of the Arrangement and are included in the monthly contributions made to the IVA. These fees do not generally affect the total amount payable, but instead reduce the final dividend that each creditor hopes to receive from the IVA. As a result, an Insolvency Practitioner must agree his fees with voting creditors before an IVA is accepted. The nominee's fee is a fee charged in relation to the work performed up to the point when the IVA is agreed. It is reclaimed from payments into the IVA before any dividend is paid to creditors. The supervisor's fee is an ongoing fee in relation to the work performed during an IVA. It is reclaimed from payments into the IVA at regular intervals, as agreed with voting creditors. This could be quarterly or annually depending on the rules stipulated in the individual's proposal. Some debt management companies try to include an extra IVA arrangement fee. An IVA will also charge disbursements throughout the duration of the IVA, to cover any costs incurred by the supervisor managing the arrangement. Disbursements are split into category 1 and category 2 disbursements. Category 1 disbursements are costs directly related to arrangement and payments made to any third parties. Examples of these disbursements are bonds, PPI and mis-selling searches and set-up fees. Category 1 disbursements cannot be capped by creditors. Category 2 disbursements are related to the insolvency arrangement, however are not made to a third party. They include shared or allocated costs on a reasonable basis. Examples of this are business mileage, printing and photocopying and postage The home Perhaps the biggest advantage to an IVA over bankruptcy is the control the debtor may have over their home. In bankruptcy, the debtor's assets will vest in the Trustee (some assets are excluded, notably those used as tools of trade, ordinary household contents). This will usually include equity in their property and the trustee may force its sale. An IVA proposal may exclude the property altogether, or propose a re-mortgage or offer income