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Ethical Practices
We make a difference
To find out more about managing your money and getting free advice, visit Money Helper
At Debt Advisory Services, we provide debt advice. However, if you choose to proceed with a debt solution through us, fees may apply depending on the solution and provider you select. These fees are covered by the contributions you make to your creditors during the term of your agreement.
For residents of England, Northern Ireland, or Wales who are eligible for a Debt Management Plan (DMP), are administered directly by us at Debt Advisory Services. Different fees will apply for this service, see below.
For residents of England, Northern Ireland, or Wales who are eligible for an Individual Voluntary Arrangement (IVA), services are provided by The Insolvency Group, which is part of the same organisational structure as Debt Advisory Services (Scotland) Limited. Different fees will apply for this service, see below.
Solutions for England, Northern Ireland and Wales
Debt Management Plan
In the first 6 months of your monthly payment plan, we charge £42.00 of your agreed monthly payment. This is for the setting up of your plan. This is on top of your monthly management fee detailed below. This is capped at 47.5% of your calculated disposable income.
Thereafter we charge just your monthly management fee, depending on the number of creditors we are dealing with on your behalf, until your plan ends.
Monthly management fee charges are (your fee will never exceed 47.5% of the monthly payment you make on your plan):
Thereafter we charge just your monthly management fee, depending on the number of creditors we are dealing with on your behalf, until your plan ends.
| No of Creditors | Amount per month |
|---|---|
| 1-5 creditors | £40pm |
| 6-10 creditors | £45pm |
| 11-15 creditors | £50pm |
| 16-20 creditors | £55pm |
| 21+ creditors | £60pm |
However, your fee will never exceed 47.5% of the monthly payment you make on your plan.
To see the Terms & Conditions click here, the client has a 14 day cooling off period when they receive the terms and conditions.
Individual Voluntary Arrangement
No upfront fees are required. Fees apply should you decide to enter an arrangement.
To set up an IVA, you need to instruct the services of an Insolvency Practitioner (IP) so there are some costs involved. An IP is a licensed professional.
There are three main costs associated with an IVA as shown below. All these costs are already included in your monthly IVA payments, or any other monies you pay in.
The fees outlined within your IVA proposal will be £4,250 for a 5-year term. This is subject to change if the term is extended for any reason or if further monies are introduced into the IVA (such as from the sale of an asset) but these will be detailed within your documents.
Your creditors may choose to modify these fees before acceptance of the IVA, usually, so they get a better return, these will be discussed with you for your agreement before the IVA can be accepted.
These costs include:
Nominee’s Fee
This covers the preparation of your IVA proposal, which includes assessing your current financial situation and repayment offer to creditors. It also covers admin and facilitation costs during the process up to and including the approval of your IVA.
Supervisor’s Fee
A supervisor’s fee is also included within the fee proposed to your creditors.
Should additional monies be realised your Supervisor may be permitted to draw extra fees from those funds.
The supervisor’s fee covers the expenses incurred while implementing your IVA for its duration.
This includes the cost of collecting your monthly payment and distributing it to creditors, handling any queries from yourself or creditors, managing creditor relations, undertaking annual reviews, and any other work involved in implementing your IVA.
Disbursements
Disbursements may vary from case to case. If an IVA is agreed on a fixed fee basis, these costs will be included in this fee, however, if the fees are modified by your creditors these may be due on top of your Nominee & Supervisors fees.
Just remember, these will all be covered by your monthly payments. These will also be fully detailed within your paperwork.
Disbursements usually cover expenses paid to third-party companies for software licenses, insurance, or any requirements of the arrangement. They could also include the cost of additional services hired to offer the best returns to creditors.
Debt Relief Order
There is now no fees for a Debt Relief Order
Bankruptcy
£680 administration fee (paid to Insolvency Service)
Bankruptcy
You may be required to make monthly payments for three years, based on what the trustee determines you can afford.
Your bankruptcy will be listed on a public register and will appear on your credit report for six years.
The duration of your bankruptcy could be prolonged.
Your employment status may be impacted by the bankruptcy.
Interest accrual, additional charges, and debt collection efforts will be suspended.
Typically, debts are discharged after a period of 12 months.
You might be able to retain necessary household items.
The entire application can be completed online, and the fees can be paid in installments (applicable only in England and Wales).
Bankruptcy Fees
In England and Wales:
The application fee is £130
The bankruptcy deposit is £550
In Northern Ireland:
The court fee is £151
The bankruptcy deposit is £525
There is also a solicitor’s fee, which is approximately £7 (this may vary based on the solicitor)
For residents of Northern Ireland who are on a low income or receiving certain benefits, the court fee might be waived. However, the bankruptcy deposit is mandatory for everyone.
After filing for bankruptcy, an official receiver will examine your finances to determine if you can contribute towards your debts. If you have a disposable income of over £20 per month after essential expenses, you may be required to make monthly payments for up to three years under an ‘income payment arrangement’ (IPA).
The official receiver will not obligate you to contribute to your bankruptcy if you cannot afford it, ensuring you retain sufficient funds for monthly living expenses.
Should you possess valuable assets, like property, vehicles, expensive jewellery, or savings, the official receiver may sell these items. The proceeds from these sales will be used to repay a portion of your debts.
Debt Relief Order
There is now no fees if you are eligible for a Debt Relief Order
Solutions For Scotland
Solutions For Scotland
Debt Arrangement Scheme
There are three elements which make up DAS fees, although it should be noted that these are not paid on top of your debt. The level of your debt is the maximum amount you will pay under DAS with the fees being deducted from what your creditors receive.
Continuing Money Advisor Fee:
Your Continuing Money Advisor will receive 15% of any payments you make towards your approved debt payment programme.
Payment Distributor Fee:
A payment distributor appointed upon approval of your DPP will be responsible for collecting and distributing your payments. They will receive 5% of any payments towards your approved debt payment programme.
DAS Administrator Fee
The DAS Administrator is the government body responsible for overseeing the Debt Arrangement Scheme and they will receive 2% of any payments you make towards your approved debt payment programme.
Given the above your creditors will receive 78% of what is owed to them should you complete an approved DPP and are required to write off the remainder.
Protected Trust Deed
No upfront fees are required. Fees apply should you decide to enter an arrangement.
To set up a Trust Deed, you need to instruct the services of a Trustee so there are some costs involved. A Trustee is a licensed professional.
A Protected Trust Deed (PTD) can only be provided by an organisation with a licensed Insolvency Practitioner.
The initial advice is free and fees for a PTD are as outlined below.
To set up a PTD, your Insolvency Practitioner (or trustee) will assess your income and expenses to determine an affordable monthly payment for your creditors, factoring in your essential bills and living costs.
PTD fees and costs are deducted from these payments, and the remaining amount is distributed to creditors.
This split and the trustee’s fees are reviewed and approved by your creditors as part of the process to achieve protected status.
The trustee’s fees generally include:
- A fixed fee, ranging from £1,000 to £3,000, depending on the complexity of the PTD.
- A realisation fee, usually 10-20% of the funds received.
The Accountant in Bankruptcy (AiB), a Scottish Government agency, supervises PTDs and can audit the trustee’s fees for a 5% charge if requested by you or your creditors, which would reduce funds available to creditors.
During the 4-year PTD term (or longer if needed), the trustee and their qualified staff will:
- Prepare and present your PTD proposal to creditors.
- Obtain protected status for the PTD.
- Handle creditor and AiB communications.
- Monitor your payments and any changes in your financial situation.
- Annually review your finances and update creditors on PTD progress.
- Distribute dividends to creditors and finalize the PTD at completion.
Example of PTD costs and outcomes:
- Monthly Payment: £206
- Total Debt: £21,460
- Term: 48 months
- Total Payments: £9,888
- Total costs including fees and outlays: £5,877
- Available to your creditors: £4,010.40
- Dividend paid to your creditors: 18.68p/£
Minimal Asset Process
The Minimal Asset Process (MAP) in Scotland has a one-time application fee of £50.
This fee covers the entire MAP process, and there are typically no additional fees or costs involved.
The fee is designed to make MAP an affordable debt solution for individuals with limited income and assets.
In cases of extreme financial hardship, some charitable organisations may help with the MAP fee.
Sequestration
There is an application fee of £150 to enter the Full Administration Sequestration
.
You might be able to pay this in instalments and if you are in receipt of certain prescribed social security benefits (e.g. Universal Credits, Child or Working Tax Credits) or you are assessed as having no surplus income then there is no application fee payable.
Additional fees may apply depending on your circumstances.