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Debt solution costs and fees

When it comes to choosing a debt solution, it is important to keep in mind that some solutions involve fees that you may have to pay out of your own money.

We have outlined the different costs you may need to consider depending on the kind of solution you have been recommended.

Administration order

England, Wales and Northern Ireland

There are no fees to apply for an administration order. However, the court takes a fee every time you make a payment. The total amount taken in fees cannot be more than 10% of your debt.

So, if you had debts totalling £100, the court could not take more than £10 in fees.

Bankruptcy

England, Wales and Northern Ireland

In England and Wales, it costs £680 to declare yourself bankrupt. This is made up of a:


  • £130 application fee
  • £550 bankruptcy deposit

In Northern Ireland, it costs around £683 to go bankrupt. This is made up of a:


  • £151 court fee
  • £525 bankruptcy deposit
  • £7 solicitors fee – this can be different depending on your solicitor

Debt management plan (DMP)

All UK

StepChange provides free debt management plans. We do not charge any set up or maintenance fees.

Other providers may charge a percentage of the money you pay to them, which can be as high as half of your monthly payment.

Debt payment programme (DPP)

Scotland only

You do not have to pay any fees to get a DPP through the debt arrangement scheme (DAS). But there are fees included which are paid by your creditors:


  • 2% of your total debt amount is paid to the Accountant in Bankruptcy (AiB)
  • 15% of your total debt amount is paid to your money advisor
  • 5% of your total debt amount is paid to your payment distributor

Your creditors pay these fees because they are deducted from the balance you owed at the beginning of your DPP.

For example, if you owed £100 to one creditor, this creditor would deduct:


  • £2 to pay the AiB
  • £15 to pay the money advisor
  • £5 to pay the payment distributor

This means that you will only pay £78 of the original £100 back to the creditor through your DPP.

Debt relief order (DRO)

England, Wales and Northern Ireland

The rules around DROs have changed.

In England and Wales, there is no fee to apply for a DRO as of April 6th, 2024.

In Northern Ireland, there is no fee to apply for a DRO as of June 17th, 2024.

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Financial Solutions – Mortgage and equity release advice

All UK

StepChange Financial Solutions do not charge fees for advice. This means you can discuss your options with us without paying anything.

But, if you go ahead with equity release or a mortgage, on completion you will need to pay a non-refundable service fee. We keep this fee as low as possible.

Fees vary widely between other providers, and we recommend that you do your research to find what is best for you.

Individual voluntary arrangement (IVA)

England, Wales and Northern Ireland

Every IVA costs money to set up and run.


  • Fees are detailed in your IVA proposal, which an insolvency practitioner (IP) will assist in drafting
  • Any fees must be approved by creditors
  • Your IP will explain what fees you need to pay for your IVA
  • They can be different from one case to the next
  • You must agree to fees before your IVA is approved

StepChange IVA fees follow the industry standard for IVAs.


  • We deduct these fees from your monthly IVA payment
  • There are no upfront fees
  • There are no charges if your IVA is not approved

Different IVA companies have different fees. They may take the fees at different times too.

Minimal asset process bankruptcy (MAP)

Scotland only

There is a £50 fee to the Accountant in Bankruptcy (AiB) when you enter into MAP bankruptcy, but you might not have to pay this depending on your financial situation.

StepChange do not charge any set-up or advice fees.

Protected trust deed (PTD)

Scotland only

You will have to pay fees for the insolvency practitioner (IP). This comes out of the trust deed fund.

This is the total amount of money you can offer your creditors.

It is made up of:


  • Your monthly payments
  • Any assets included
  • Any equity included

Sequestration

Scotland only

Sequestration is a type of bankruptcy in Scotland. You need to pay a one-off £150 fee to the Accountant in Bankruptcy (AiB) before submitting your application.


  • You may be able to get help paying this
  • It may go down to £0 if you receive certain benefits

Token payment plan (TPP)

All UK

StepChange provides free token payment plans. We do not charge any set up or maintenance fees.

This may not be the case with all TPP providers.