Fees & Information

Debt Solution Fees

Debt solutions are designed to help individuals manage and resolve debt. These solutions can be formal procedures, such as an Individual Voluntary Arrangement (IVA) or Bankruptcy, which fall under personal insolvency, or informal solutions, such as Debt Management Plans (DMPs) and Negotiated Agreements with creditors.

When entering a debt solution, fees may apply depending on the solution chosen and the provider. Understanding these costs is essential when considering the most suitable option.

What Fees Are Involved in a Debt Solution?

The fees associated with a debt solution vary based on the type of solution and the provider. These costs cover the administration and management of the case, including communication with creditors and ongoing servicing of the arrangement.

In most cases, fees are incorporated into the monthly payments agreed upon at the start of the solution, ensuring they remain affordable based on personal circumstances. Typically, no upfront charges are applied for initial advice or setting up a solution.

Below is an overview of the typical fees associated with debt solutions in England, Wales, and Northern Ireland.

Debt Management Plan (DMP)

Fees for a Debt Management Plan depend on individual circumstances and the provider. Some providers charge a fee, which is included in the agreed monthly payment and covers case management and disbursements to creditors. However, free DMPs are available through charitable organisations such as StepChange.

You can read more about Debt Management Plans here.

Individual Voluntary Arrangement (IVA)

IVA fees can vary depending on the specific arrangement, but the average costs are:

• Nominee’s fees: £1,650
• Supervisor’s fees: £1,750
• Supervisor’s costs (disbursements): £250

All fees are agreed upon with creditors before the IVA is approved. Creditors may propose adjustments to the fee structure, but any changes will be discussed before final approval. You can read more about IVAs here.

Bankruptcy

For residents of England and Wales, the fees for bankruptcy are:

• Application fee: £130
• Bankruptcy deposit: £550
• Total: £680

For residents of Northern Ireland, the fees are:

• Court fee: £115
• Bankruptcy deposit: £525
• Solicitor’s fee: £7
• Total: £647

Bankruptcy fees must be paid in full before an application can be submitted for approval. Payments can be made in instalments, but the application will not be processed until the full amount has been received. You can read more about Bankruptcy here.

Debt Relief Order (DRO)

There is no fee to apply for a Debt Relief Order. You can read more about Debt Relief Orders here.

Debt solutions provide valuable support for managing financial difficulties, but it is essential to be fully informed of the costs involved. Seeking advice from a regulated debt advisor can help in making the right decision based on individual circumstances.