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Free advice on problem debt
based on what's best for you

0800 138 1111 Freephone (including all mobiles)

Estimated cost for debt solutions

When considering a debt solution such as an individual voluntary arrangement, it's important to keep in mind that some involve fees that you may have to pay out of your own money*. We've outlined the different costs you may need to take into account depending on the kind of solution you've been recommended.

Bankruptcy

It will cost £655 to declare yourself bankrupt. There are further costs payable out of any asset realisations, including a £1,715 administration fee imposed by the official receiver and a fee based on a percentage of realisations charged by the Secretary of State (0% of first £2,000, 100% of next £1,700, 75% of the next £1,500, 15% of the next £396,000, then 1% thereafter). In addition there may be fees and expenses if a Trustee is appointed to realise assets.

Debt relief order

It will cost you £90 to apply for a DRO.

County court administration order

There’s a court fee every time you make a payment. This can’t be more than 10% of your debt.

Debt management plan 

Entering a debt management plan is free to clients if it's provided by StepChange Debt Charity. Other providers may charge a percentage of the money you pay to them.

Individual voluntary arrangement

The costs involved in an IVA are:

  • A Nominee fee
  • A Supervisor fee
  • Disbursements

The Nominee fee is the cost for assisting you to put to put the IVA proposal to your creditors. This is subject to approval by your creditor. Depending on who your creditors are and the amount of your monthly contribution it could be either the first 5 payments into the IVA or £2,000.

The Supervisor fee is 15% of any further contributions to cover the on-going costs of the IVA.

There are also other costs known as disbursements. These are expenses that we have to pay third parties and include bonding (insurance) to protect any money paid to your IVA, system maintenance and a registration fee to register the IVA with The Insolvency Service.

The cost of any legal advice specific to your circumstances may also be charged as a disbursement. If you own a property there will be expenses to cover the cost of any valuations of your property and land registry fees.

Your specific fees will be confirmed when your IVA proposal has been drafted. These are also subject to approval by your creditors.

If you were able to pay your creditors in full during the term of the IVA or if your IVA fails, the fees would not be refunded.

*These fees are correct as of February 2015. However, we advise that you confirm the fees before proceeding.

 

Our team is here to help

0800 197 1713 Monday to Friday 9am to 5pm*

contact

Our address

StepChange Voluntary Arrangements

Tower North Central

Merrion Way

Leeds

LS2 8PA

Helping you become debt free...

“I wish to thank your staff for all the great help they gave me when I was in so much debt.
They were a pillar of support to me.” (Leslie, Essex)

Foundation for Credit Counselling Wade House, Merrion Centre, Leeds, LS2 8NG trading as StepChange Debt Charity and StepChange Debt Charity Scotland. A registered charity no.1016630 and SC046263. It is a limited company registered in England and Wales (company no:2757055). Authorised and regulated by the Financial Conduct Authority.

*This is the average rating of our service on Feefo by DMP and DRO clients three months into their solution.

© StepChange Debt Charity 2016