Bankruptcy
It will cost £680 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 (DRO)
The rules around DROs have changed. In England and Wales, there is no fee to apply for a DRO as of April 6th, 2024. In Northern Ireland, there is no fee to apply for a DRO as of June 17th, 2024.
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
- Disbursem*nts
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 disbursem*nts. 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 circ*mstances may also be charged as a disbursem*nt. 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 January 2018. However, we advise that you confirm the fees before proceeding.
Don't forget...
You can contact the IVA team if you need help with a significant budget change or with making your IVA payment. Our number is 0800 197 1713 and we're open Monday to Friday 9am to 5pm.
