Fee Information

Example of trustee fees that may be incurred during administration of Trust Deed:

All Trustee fees and outlays for your Trust Deed administration are covered by the contribution made to your trust deed and/or your assets. This amount is agreed before you sign the Trust Deed paperwork and you do not have to pay any additional fees.

  • The fee for a 4 year trust deed is fixed, typically ranging from £1,000 to £2,500 and this may vary depending on your creditors.
  • There is an additional fee of, typically ranging from 10-20% of the total of the assets and contributions.

You and your creditors will be advised of the total fee amount in your trust deed proposal. Should you feel it necessary, you and/or your creditors can request the Accountant in Bankruptcy (AIB), the agency that supervises Trust Deeds, audit the fee. The AIB charge a 5% fee, which comes from any fees and outlays, to audit the accounts which reduces the funds that will be distributed between your creditors. The fixed and additional fees are based upon the amount of work taken to set up your Trust Deed and administer it during the process. The fee will periodically be taken during your Trust Deed. The fixed and additional fees are based on the following work being required to setup your Trust Deed and administer it through to its’ conclusion. Your Trustee along with suitably qualified members of his staff will undertake these tasks (this list is not exhaustive);

  • SIP3 call
  • confirming your trust deed proposal, and other debt options.
  • Getting your trust deed protected.
  • Dealing with your creditors, the AIB and any relevant third parties on your behalf.
  • Monitor payment of your monthly income contributions.
  • Realising any valuable assets to your estate.
  • 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
  • Monitoring your monthly contributions.
  • Annually reviewing your income and expenditure
  • Sending an annual report to your creditors updating them on the progress of your Trust Deed..
  • Completing the paperwork required at the end of your Trust Deed term to discharge you and your trustee.

If at any point during your Trust Deed, you feel like you may struggle to pay your contribution, you must contact your trustee immediately. It may be possible to arrange a payment amendment or holiday due to extenuating circumstances if these can be evidenced. If you breach your payment agreement without contact and consent from your trustee, you could be discharged from the Trust Deed which would leave you in the same position you were in before you entered it, having to repay your debts in full, (plus interest and minus any payments made to date) and dealing with multiple creditors or, in some cases, you could be sequestrated, (made bankrupt), for failing to comply with your Trust Deed terms.

Debt Arrangement Scheme (DAS) fees

No setup fees

There are no fees payable by an individual entering into a Debt Payment Plan through the DAS. This is the same for all individuals whether they use an insolvency practitioner/private sector firm (e.g. Harper McDermott Ltd) or a public sector organisation (e.g. CAB or local authority Money Adviser).

The costs of administering the scheme are borne by the creditors i.e. from every £ received into the scheme, 22p is used to pay these costs; this 22p is split between the DAS Administrator (2p) and the Money Adviser (20p).  There may also be a payment made to the Payment Distributor (PD) and, if so, this would result in the Money Adviser’s fee being reduced by the same amount as paid to the PD. The remaining amounts are distributed amongst all creditors on a pro rata basis and a successfully completed DPP deems all debts to be repaid in full.

Note:

It is essential that you maintain your agreed monthly contributions into your DPP. If at any point during the term of your DPP you feel you can no longer afford the payments agreed, you must contact your Money Adviser or their staff to discuss. Contacting us to discuss any payment difficulties you are experiencing or changes in circumstances is essential, DPPs under DAS do provide an element of flexibility. You may be entitled to a payment break in certain circumstances (such as illness or redundancy) or your Money Adviser may be able to review and amend your payment to suit your changed circumstances – this is subject to creditor approval. If you fail to keep up with your agreed payments and fail to contact your Money Adviser to discuss, your DPP may be revoked, leaving you liable for payment of your debts at their original contractual payment level (including interest and less any payments made to date).