Individual Voluntary Arrangement (IVA)

The fees involved in an individual voluntary arrangement are as follows:

Nominee Fee:

The nominee fee is charged for the advice provided prior to entering into the IVA, preparing your IVA proposal, and corresponding with your creditors.

Once your meeting has been held and if your IVA is approved, you will then be charged a Supervisory Fee.

The supervisory fee is incurred for on-going administration of your arrangement, dealing with creditor correspondence, completing annual reviews, and providing ongoing support to you throughout the term of the IVA. All fees will be outlined to you within your proposal, and we charge the following fees:

• Nominee Fee: £2100 for individual applications or £2500 for interlocking (joint) applications
• Supervisory Fee: 20% of all funds paid into the arrangement (Known as Realisations)

All fees are taken from your monthly contribution and are not additional charges. Fees are subject to approval or modification by your creditors. You should not be asked to pay a fee upfront when entering an IVA.

Debt Management Plan (DMP)

If you’re recommended a Debt Management Plan (DMP), we will refer you to Debt Advisory Services (Scotland) Ltd, who charge fees for administering the plan. All fees will be outlined to you before you decide to proceed. Some organisations administer DMPs without charge; you can find out more about them at moneyhelper.org.uk.

Bankruptcy

If you make an application for Bankruptcy, you will need to pay a set fee. This fee can be paid in instalments but must be paid in full before submitting your application. Some charitable organisations may assist with trust funds for those unable to cover these fees.

If your creditors apply to make you bankrupt, the costs are usually covered by them. They must owe at least £5000 before doing this and will issue a Statutory Demand. If you receive a Statutory Demand, seek advice immediately by calling us.

Bankruptcy Fee: £680 (composed of £130 Adjudicator’s Fee and £550 Deposit)

Debt Relief Order (DRO)

There is no longer a fee for a DRO if you’re eligible and decide to proceed. Previously set at £90, this fee has been removed. If eligible, you will not be required to make payments toward your outstanding debts, but you must meet all qualifying criteria to apply.

Trust Deed (Scotland Only)

If you enter into a Trust Deed or Protected Trust Deed, the Insolvency Practitioner or Trustee will charge fees, which are deducted from your monthly contributions. You should not pay fees upfront for this option. Typical fees are around £4000, but each firm may vary.

Sequestration & Minimal Asset Process (MAP) – Scotland Only

In Scotland, Bankruptcy takes different forms.

Should you be eligible and become Bankrupt through the MAP bankruptcy rules you will not be charged a fee.

Should you go bankrupt under a full administration, the fee is £150 unless you’re in receipt of certain benefits.