Debt Solution Fees
We’ve scoured the web to give you an idea of what fees to expect when it comes to various debt solutions.
Certain debt solutions have fixed fees set by the government, but others can vary by which company you’re using for your solution. Make sure you’re clear on what you’re paying before proceeding with a solution.
“You can only apply for bankruptcy online via the gov.uk website. It costs £680.“
Administration Order Fees
“You don’t have to pay a fee to apply for an administration order. If an administration order is made then the court will take 10 per cent of the amount paid under the order to cover it’s costs.
For example, if you are ordered to pay a total of £3,000 under your administration order the court will deduct £300 and your creditors will receive £2,700.
When you make your monthly payments to the court, the court will deduct 10% from each payment to cover their costs. 10% amounts to 10p in every pound.
If the application is unsuccessful and an administration order isn’t made you won’t have to pay any fees or costs, even if there has been a hearing.”
Debt Relief Order Fees
“The official receiver’s fee is £90. Your debt adviser can tell you how and when to pay it. In some cases a charity may be able to help you with the cost – ask your debt adviser.”
Debt Management Plan Fees
“If you decide to start a DMP with a fee-charging provider, the fees you pay will cover the costs of them setting up your plan, dealing with your monthly payments, providing you with statements and reviewing your plan regularly to ensure its still working for you. Remember that a free provider can do all of this at no cost.
The fees charged by commercial DMP providers will vary between companies, and are typically around 17% of your monthly payment each month. If you do decide to start a DMP with a company that charges you, it’s important to find out what you’re paying for, and to work out how much of your monthly payment will be going towards your debts.”
“You always have to pay fees for an IVA to be set up and managed – around £5,000 on average.
The fees charged by the insolvency practitioner are for:
- checking an IVA is right for you
- applying to the court for your IVA and speaking to your creditors
- making sure your creditors get the agreed payments and reviewing your situation each year
How and when you pay the insolvency practitioner varies. Some practitioners will ask you to pay a fee before setting up an IVA.
Other practitioners won’t charge a fee at the start. The fees will be taken from your monthly debt repayments. When you make your monthly payment into the IVA, a portion of the money will go to pay the insolvency practitioner and the rest will go to your creditors.”
“If you get some benefits like Universal Credit, Employment and Support Allowance or tax credits, you don’t have to pay a fee to be made bankrupt.
If you don’t get any of these benefits, the fee is £150 for standard bankruptcy or £50 for the Minimal Assets Process. This goes to the Accountant in Bankruptcy.”
Protected Trust Deed Fees
“If you decide to set up a trust deed, you will need to see a licensed insolvency practitioner.
The insolvency practitioner will become the trustee for your trust deed. They will charge you a fee for setting up and running the trust deed. They are not allowed to charge their fees at an hourly rate. Instead they have to charge a single, fixed, upfront fee plus a percentage of the assets that they gather in as part of the running of the trust deed.
Insolvency practitioners’ fees vary and can be expensive. You might want to check the charges of a number of different insolvency practitioners before you decide which insolvency practitioner to use.”
Debt Arrangement Scheme
“It’s free for an individual to set up a debt payment programme (DPP) under DAS. Money advisers are no longer allowed to charge you a fee for helping you to apply for a DPP under DAS.
You don’t have to pay an administration fee for the running of the DPP. Your creditors do have to pay this fee though.”