Fee Structure

 While all the initial debt advice we give is on a without obligation basis, if you enter into a debt solution with us, a fee will be chargeable which is dependent upon your preferred debt solution

Chargeable fees are deducted from the agreed contributions that will be paid by you and from any funds realised from asset realisations during the term of your agreement.

Fees differ for both Trust Deeds and the Debt Arrangement Schemes; these are solutions that are only available to individuals living in Scotland.

Trust Deeds (“PTD”)

Affordable, sustainable contributions are paid by you for the term of your arrangement. The proposal considered by creditors will include the amount of the agreed monthly contribution which will be assessed on the amount you can reasonably afford and will be reviewed every six months. This contribution covers the running costs of the Trust Deed.

We charge a fixed fee of between £2,000-£3,500, this varies depending on the work involved in your PTD and your creditors’ acceptance criteria.
The Accountant in Bankruptcy (AIB) charges a supervision fee for each year of the Trust Deed (typically £480 over the course of 4 years).
We also charge between 15-20% of funds collected into the Trust Deed from your contributions and asset realisations paid into the arrangement.
The fixed and realisation fees are based upon the amount of work undertaken to set up your PTD and to administer it during the term. Your Trustee along with suitably qualified members of his staff will undertake the following tasks (this list is not exhaustive):

• Preparing and presenting your Protected Trust Deed proposal to your creditors.
• Obtaining protected status for your Trust Deed.
• Dealing with your creditors, the AiB and any relevant third parties on your behalf.
• Monitor payment of your income contributions.
• Realising any assets for the benefit of your creditors.
• Adjudicating on creditors’ claims.
• Paying dividend/s to your creditors.
• Dealing with any changes in your personal or financial circumstances during the Trust Deed that could affect your payments and if necessary, liaising with your creditors regarding these changes.
• Undertaking work to fulfil our statutory obligations under the scheme
• Carrying out a six-monthly review of your income and expenditure
• Reporting annually to your creditors, updating them on the progress of your PTD.
• Finalising the administration of your PTD, processing yours and the Trustee’s discharge.

Note: It is very important that you keep up your Trust Deed payments, or the arrangement could be terminated. If it does, you will be liable for the outstanding amount owed to creditors.

Debt Arrangement Scheme (“DAS”)

Fees in relation to DAS are set out in legislation and are the same for all individuals whether they use an insolvency practitioner firm or a third/public sector organisation (e.g. StepChange Debt Charity, Citizens Advice Bureau or a local authority Money Adviser).

The costs of administering the scheme are deducted from the contributions made to the scheme, as an example for every £1 received into the scheme, 22p is used to pay the costs; of this 22p the DAS Administrator received 2p, the Money Adviser receives 15p and the Payment Distributor receives 5p. We act as the Money Adviser therefore, ultimately Begbies Traynor (Central) LLP receives 15p. The remaining amounts are distributed amongst all creditors on a pro rata basis and a successfully completed scheme deems all debts to be repaid in full, including accruing interest and charges, and fees.