Fees

The Debt Advisor Ltd is authorised and regulated by The Financial Conduct Authority. This means we are able to offer debt advice and administer both formal and informal debt solutions on behalf of individuals and business owners.

Individual Voluntary Arrangement (IVA) Fees

If you choose an IVA with the Debt Advisor, we are a commercial organisation and we charge fees for this service. The first fee is the fee charged by the Insolvency Practitioner for setting up an Individual Voluntary Arrangement IVA – is known as the ‘Nominee’s fee’ and the second fee charged by the Insolvency Practitioner for administering the IVA typically for a period of 5 years. This fee is known as the ‘Supervisor’s fee’.

• The Nominee’s fee is usually £1,900
• The Supervisor’s fees are usually 20% of all payments paid into the IVA.
• Disbursements are also charged to cover things such as Insurance, registering your IVA.

These fees and disbursements are deducted from your agreed affordable monthly payments. Your Nominee’s fee and reasonable disbursements is payable before distributions will commence to your unsecured creditors.

Entering into an IVA will result in your accounts falling into arrears or increasing arrears. The debt write-off amount for each customer differs depending upon their individual financial circumstances and is subject to the approval by their creditors. An IVA may not be suitable in all circumstances. Entering into an IVA will affect your credit rating and will be shown on a public register.

If your IVA is terminated because e.g. you have failed to pay all the agreed IVA payments, it is likely that the majority of the contributions you have paid will have been used to pay the costs and expenses of your IVA. This will mean that the amounts you owe to your creditors will have reduced by very little. Your creditors will again be able to claim the amounts you owe to them together with interest and charges. For full details of the risks and benefits of an IVA visit our IVA page.

Debt Management Plan (DMP) Fees

If you choose a Debt Management Plan (DMP) with the Debt Advisor, we are a commercial organisation and will charge a fee for this service. Our fees cover:

• Review of your engagement pack and supporting documentation to ensure a DMP plan is still appropriate.
• Drafting your plan, sending this to creditors, chasing up responses and ultimately gaining creditors approval of your offer.
• Dealing with creditors’ queries.
• Monitoring your payments and distributing these to creditors within 5 working days of your funds clearing our DMP account

The fee we charge to cover our services is calculated at £48.95 or 49% of your monthly contribution, whichever is the lower. As the setup and initial period of your Debt Management Plan are the busiest, we charge an enhanced Fee of £400. This is a one-off fee, and it includes:

• Formulating your Income and Expenditure (I&E) budget and calculating the affordable offer of repayment to your debts included in the plan.
• Reviewing your draft Payment Plan.
• Speaking to your creditors and negotiating monthly debt payments.
• Liaising with and providing information to your creditors on your behalf.

Our Enhanced Management Fee will be deducted from your agreed monthly payment (in addition to our Monthly Management Fee) until it is repaid. If you haven’t repaid your one-off fee by month 18, the remaining amount is written off.

Creditors will receive a reduced payment during this time of not less than 52% of your monthly payment. You may go into arrears or further arrears during this period, but these arrears will be included in your plan.

Distributions will be made pro-rata payments to your creditors within 5 days of receiving your funds into the account.For full details of the risks and benefits of a DMP visit our Debt Management Plan page. To discover more about how to manage your debt and to receive free debt advice visit  www.moneyhelper.org.uk

Other Information

We will not charge you a fee for the initial call and advice you receive. If you choose to enter a Debt Solution provided by us, fees will apply.

Solutions provided by The Debt Advisor are available for individuals living in England, Wales and Northern Ireland.

All debt solutions should be very carefully considered. Our team will provide you with the most appropriate advice taking into account your circumstances. These include: Individual Voluntary Arrangements (IVAs), Bankruptcy, Debt Relief Orders, Debt Management Plans, and Debt Consolidation. All of which are covered on this site.

Alternative free-to-consumer debt services are available from the Money Helper website.