Our Fees Explained

Positive Steps Debt Assistance Limited acts as an Introducer to our Panel of Service Providers. We are proud to say we do not charge any additional fees other than those from our Service Providers.

So we will assess your circumstances and find you the best solution for no additional cost!

We receive a fee directly from our partners for each customer we refer to them and who signs up to one of their debt solutions. These include an Individual Voluntary Arrangement, a Protected Trust Deed or a Debt Management Plan. This is payable to us by our Partner firms under the following circumstances:

  • You sign up to a Debt Management Plan
  • Your Individual Voluntary Arrangement gets Approved at Meeting of Creditors.
  • Your Protected Trust Deed gets Approved at Meeting of Creditors.

Debt Management Plan Fees

If you accept our advice to enter into a debt management plan (DMP) with one of our partner firms then their fees will be based around your disposable income. This is the figure that we agree that you can afford to pay to your unsecured creditors on a monthly basis.

What does my fee cover?

Your Debt Management Provider will deal with all aspects of managing your debt (including):

  • Dealing with all forms of creditor communication (letters, emails, phone calls, text messages).
  • Ensuring that all creditor communication is directed towards them..
  • Ensuring that payments are made promptly to your creditors.
  • Agree a monthly payment with your creditors based on what you can afford.
  • Negotiate with your creditors with the intention of having all interest and charges frozen.
  • On-going personal financial health check to see if they can save you money in other ways.
  • Account Managers (on hand via phone or email whenever you need assistance).

As there is a lot of work involved in setting up your DMP, your Debt Management Plan provider will charge you a fee for this work. This fee will be capped at twice your monthly disposable income. For example if your disposable income is £180 they will charge you £360. However, from month 1 of your plan they will spread the costs of this charge across the first six months of your DMP.

In addition they will charge you a monthly management fee. This is the fee that they charge you for managing your DMP. Again this fee will be linked to your disposable income.

If your disposable income is £100.00 a month or less, then they will charge you £30 a month. If your disposable income is £100.01 to £200 a month then they will charge you £35 a month. If your disposable income is £200.01 or more a month, then they will charge you a fee equivalent to 17.5% of your disposable income.

At all times the fees they charge will be compliant with, and in the spirit of, the Financial Conduct Authority rules and guidance.

What if I change my mind?

If you enter in to a Debt Management Plan with our Partner firm and then change your mind, you will be provided with a cooling off period. The 14 days that make up the “Cooling Off” period will commence with the date that your agreement commences which will be the date that You requested them to begin carrying out their service for you.

If you cancel the agreement within that cancellation period, you will receive a full refund of all the fees you have paid to them. If you change your mind after the cooling off period has expired, you will still be able to withdraw from the plan, but you will not be entitled to receive a refund of the fees paid for the work they have undertaken.

Trust Deed Fees

There are fees associated with a Trust Deed from your chosen Insolvency Practitioner. Below is an explanation of these fees and how they are charged. We are proud to say we do not charge an Initial Assessment fee.

The Initial Assessment

The initial assessment includes your financial review, processing the associated paperwork and the preparation and submission of your case to our panel of Insolvency Practitioners. The initial assessment is free of charge.

Once the initial assessment has been completed, you will be passed to one of our partner companies, where a professional Insolvency Practitioner Trustee will take care of your case.

The Trustee's fee

The Trustee's fee is a fixed percentage of your contributions into the Trust Deed, typically 20%.

The fee varies according to your individual circumstances and the fees will not be charged until your Trust Deed is signed. The fees are agreed with your Trustee and your creditors and will be paid before any money is disbursed to them. Below is a breakdown of the service provided:

Preparation of the Trust Deed document

This is the document which explains why you are unable to pay your debts and includes information of your financial situation. The document will list all your assets and debts and provide a summary of your household income and expenditure, which will show what you can afford to repay. The estimated costs of administering the Trust Deed is also shown so that lenders can see what percentage of their debts is likely to be repaid.

Ensuring the Trust Deed achieves 'protected' status

If it is unlikely that your debts will be paid off in full, your lenders will be effectively bearing the costs of the trustee's fees and therefore they may seek to alter the amount that is proposed to be charged for the administration. Accordingly the trustee will negotiate with your lenders to reduce the chances of them lodging an objection to your Trust Deed becoming protected. If we cannot secure the required acceptance the Trustee will advise you of alternative approaches to managing your debts.

Administering the Protected Trust Deed

Following your Trust Deed being granted protection, it is the Trustee's role to ensure the terms of the Deed are followed for its entire duration with monies being collected and then distributed to your creditors.

Monitoring Income Contributions

The Trustee will check that you are making payments of contributions on time at the correct amounts. Each year the Trustee will review your income and expenditure.

Asset Realisations

If you are proposing to introduce any assets into the Trust Deed, for example home equity by a remortgage, the Trustee will check that this is done in accordance with the terms of the Trust Deed.

Creditors

The Trustee will check that the claims of your creditors are correct and will then arrange to make regular repayments to your creditors during the course of the Trust Deed.

IVA Fees

There are fees associated with an IVA, the Nominee fee and the Supervisor fee. Below is an explanation of these fees and how they are charged. We are proud to say we do not charge an Initial Assessment fee.

The Initial Assessment

The initial assessment includes your financial review, processing the associated paperwork and the preparation and submission of your case to our panel of Insolvency Practitioners. The initial assessment is free of charge.

The Nominee & Supervisor fee.

There are two types of fees charged by the Insolvency Practitioner. The Insolvency Practitioner during the initial set up period acts in an advisory capacity as your ‘Nominee'. Once the IVA is approved the Insolvency Practitioner becomes your 'Supervisor'.

The level of the fee varies according to your individual circumstances and the fees will not be charged until your IVA is approved. The fees will also be agreed with your creditors and your Insolvency Practitioner.

Nominee's fee.

This is a fixed fee for the advice stage and preparation of the IVA proposal and all other necessary documents, including the calling of a creditor meeting. The Nominee's fee is paid from the monthly payment agreed in your proposal. Below is a breakdown of the service provided:

  • The IVA Proposal.
  • This is the document which explains why you are unable to pay your debts and includes full details of your financial position. It explains how much you are proposing to pay towards your debts and the proposed costs of the IVA.
  • The meeting of your creditors.
  • This is the document which explains why you are unable to pay your debts and includes full details of your financial position. It explains how much you are proposing to pay towards your debts and the proposed costs of the IVA.
  • Changes/Modifications to the proposal.
  • The Nominee's representative will consider with you any changes requested by creditors which are required in order to secure their acceptance of the proposal and will advise you whether you should accept the changes or consider an alternative approach to managing your debts.

Supervisor's fee.

Your Insolvency Practitioner will propose a percentage of incoming funds for the Supervisors fees, usually 20%. These fees cover all of the work which is done after the proposal is approved for the ongoing supervision of the IVA and payment to your creditors, until the IVA is concluded. Creditors may change the way in which we charge our fees. Below is a breakdown of the service provided:

Income Contributions /Monthly payments / Voluntary contributions / Disposable income

The Supervisor will check that you are making payments of contributions on time at the correct amounts. Each year the Supervisor will review your income and expenses.

Asset Realisations

If you are proposing to introduce any assets into the IVA by, for example, a remortgage, the Supervisor will check that this is done in accordance with the terms of the IVA.

Creditors

The Supervisor will check that the claims of your creditors are correct and will then arrange to make regular repayments to your creditors during the course of the IVA.

Bankruptcy Fees

If you go bankrupt you may have to pay the following:

  • The Court Fee of £180 (if you receive means tested benefits you may be exempt or be able to pay a reduced fee).
  • The Official Receiver Fee or Deposit of £525

If you are a couple and are both applying for Bankruptcy, you will each have to pay separate fees.

Positive Steps Debt Assistance do not administer bankruptcies, however we are able to give you guidance and identify if there may be a better option.

You can get free debt advice from the Money Advice Service – an organisation set up by the Government to offer free and impartial advice to those in debt. Click here for more information.