HELP WITH DEBT
Information about our fees
HELP WITH DEBT
Information about our fees
What fees do you charge?
While all the debt advice we give is free, if you enter into a debt solution with us, there will be a fee charged once your agreement is protected/approved. However, this will be paid from the agreed monthly contribution that you’ll pay during the term of your agreement.
An affordable monthly contribution is paid for the term of your Scottish trust deed. 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. It will be reviewed every twelve months. This contribution covers the running costs of the trust deed.
Trust deed fees, costs and contributions
Here’s an example to help explain how our fees work.
Mark owes £28,232. He gets in touch with us and we recommend a trust deed as his best solution.
He can afford £220 per month to offer to his creditors. The term of his trust deed is 48 months
Debt amount: £28,232
Monthly contribution of £180 for 48 months £8,640
Fixed fee: £2,500
Percentage fee of realisations: £1,828
Trustee’s expenses and disbursements: £1,631
Total repaid by individual (including fees above): £9,140
Total unsecured debt written off at completion: £25,051 (88%)
Expenses and disbursements shown are inclusive of VAT where applicable.
The monthly fee will cover both the initial work associated with arranging your trust deed and the work involved in keeping your trust deed running.
The fee also covers any work required by your trustee. They work with you to draw up your trust deed proposal and can take care of any more serious issues that occur (e.g. asking your creditors about changing your payments if your circumstances change significantly).
Note: It is very important that you keep up your trust deed payments, or the arrangement could fail. If it does, you will be liable for the outstanding balance and any costs already incurred.
If the trust deed fails the client is not liable for any outstanding balance and any costs already incurred. The client’s creditors are advised that he has failed to maintain the terms of his trust deed and that the trustee will seek his discharge and not grant the client/debtor his discharge.
Any costs incurred are deducted from funds held and if there is a deficit this is written off. Any unpaid contributions remain outstanding.
Debt arrangement scheme fees, costs and contributions
If you enter into a Debt Arrangement Scheme (DAS) an application is made for a debt payment programme through us. There is an initial fee – which is normally your first two payments – and then a monthly fee of 15% of each payment you make (this is subject to a minimum of £12 and a maximum of £80). Once the initial fee is paid we will begin the work required to get your DPP approved.
After approval you’ll need to make your first monthly payment within 42 days. This is the amount you have agreed with Carrington Dean and will include our monthly fee. The rest will be distributed to your creditors.
This will be used to cover the work that’s involved in setting up your debt payment programme.
Your monthly fees pay for the work that’s involved maintaining your debt payment programme, including dealing with any issues or problems that may arise.
We’ll carry out regular reviews of your circumstances to make sure your debt payment programme is still the best solution for repaying your debts. If at any point we believe it isn’t (if your circumstances change significantly, for example), we can help you to find a more appropriate debt solution for your needs
If your circumstances do change but you can still afford to make a reasonable monthly payment, we may be able to arrange with your creditors for your monthly payments to be reduced accordingly.
Sequestration fees, costs and contributions
We do not charge an initial fee to complete your sequestration application, though a £200 fee must be paid to the Accountant in Bankruptcy. If your application is accepted you will pay a monthly contribution for 36 months as a condition of your sequestration.
Let’s use an example to explain.
Joanne owes £8,670 and sequestration has been recommended as her best solution.
She can afford £220 per month to offer her creditors. She’ll make contribution payments for a period of 36 months
Debt amount: £8,670
Monthly contribution of £220 for 36 months £7,920
Trustee’s fees: £4,000
Accountant in Bankruptcy’s fees: £700
Total repaid by Joanne (including fees above): £7,920
Total unsecured debt written off: £5,540 (63%)
Trustee’s fees are shown exclusive of VAT.
The trustee’s fees won’t affect how much you pay each month, or how much you pay in total over the course of your sequestration because you’ll be expected to pay only as much as you can afford throughout the period of your sequestration.
We’ll tell you how much the trustee’s fees will be before you apply for sequestration. The monthly contribution payment fee will cover all work related to your sequestration.
The trustee will work with you to complete the necessary paperwork for your sequestration application and can take care of any more serious issues that occur (e.g. asking your creditors about changing your payments if your circumstances change significantly).
Note: It’s very important that you maintain your monthly contribution payment and co-operate with your trustee. Failure to do so may have serious consequences.