Mobiles cheaper on 0207 785 1110
Free, simple debt solutions & free debt advice
DebtWizard Fee Saving Calculator
Why pay fees for a debt management plan? See how much we could save you
when added to your level of debt we
can reduce your payment period by months...
in fees.
A fee charging debt management company is a firm that will charge you for debt advice and debt service. They usually take the first two months’ payments into your plan as upfront costs followed by 15% of your monthly payment plus VAT. The New Protocol launched in February 2013 will mean that the up front fees will be taken over six months. See Debt Management Protocol
There are some good fee charging firms operating in the debt industry and if you are happy with your firm then fine. However there are some shockers out there and we have the following guide to help you spot them, see our 7 point guide to spotting a dodgy debt advice website!
If you are thinking of starting a debt management plan or wish to transfer to a 'non' fee debt management plan and not pay fees then see how much we can save you by using the slide bars on our unique fee saving calculator above.
Government to review the cost of consumer bankruptcy fees
Page last updated Friday, 20 January 2012
See DebtWizard's letter to the Prime Minister at the bottom of this page
The cost for a consumer to petition their own bankruptcy has increased 37% since June 2010 and now stands at £700 per individual, so a husband and wife, or partners that need to go bankrupt because no other debt resolution is open to them will need to find a staggering £1,400.
For those consumers on certain benefits or a low income the court fee of £175 may be waived but for everyone else the fee is still £525 whilst in Scotland the fee is £100. If you can’t pay the fee you can’t go bankrupt!
I have expressed my concern in the past about these high costs, which in my view prevent thousands of consumers from petitioning their bankruptcy resulting in their number falling recently.
Undue stress and worry
Putting off petitioning through being unable to afford the fees can cause undue stress and worry and leave the consumer at the mercy of debt collectors and bailiffs. This then affects their health, their relationships and their general well being and for some of my clients this has been going on for several years. It is not therefore surprising to hear that sales for depression pills have outstripped those of pain killers for the first time this year.
My letter to the Prime Minister
Earlier this year I wrote to the Prime Minister raising my concerns about this issue and its effect on overstretched consumers. In my letter I suggested three possible ways forward to overcome this problem and I am pleased to report that one of my suggestions, to allow consumers to pay the current petition fees over the three years of their bankruptcy, is now under consideration. The Insolvency Service response was that “The suggestion that someone pays the bankruptcy fees over a period of time strikes me as something that may be interesting to explore and I will pass this on to our Finance Team” and their review of this issue was confirmed in a telephone conversation with them yesterday.
The deputy Prime Minister replied thanking me for information but unfortunately no response from The Labour Party leader, Ed Milliband.
You can read my letter to the PM 'The Prohibitive Cost for Consumers to Petition for Bankruptcy' by clicking on the link below;
DebtWizard Letter to PM re Bankruptcy
John (Guest) Thursday, 07 March 2013
Thank you for all info on this web site. It has helped my wife and I considerably in deciding the best way forward.
Denise (Guest) Thursday, 05 July 2012
Are you aware of any help you are able to get regarding fees for going bankrupt ? I am aware of the low income reduction possibly of the court costs however I have found nothing regarding the main buly of the fee.
Debtwizard Tuesday, 10 April 2012
Hi Gillian
You can contact me via @debtwizard on twitter or email me enquiries@debtwizard.com with your contact number and I will call you.
Best wishes, Mike
gillian (Guest) Tuesday, 10 April 2012
the whole point in going bankrupt is because you are skint!!!!! if you have to pay the official reciever money over 3 years, why cant the fees be paid to the official reciever at the same time??? greed has taken over this world, and they wont be happy until they have ruined everyone, ive been held back from going bankrupt for years now and have even tried contacting charities myself, if i could find a contact number for mike thomas, id speak with him direct, as everyone else seems to shrug you off!!!!
Gareth (Guest) Tuesday, 15 November 2011
I lent my brother the money to go bankrupt after I'd negotiated a settlement with one of his creditors that accepted 40p in the £1 from him only to renege on the deal and sell the debt to another company. I thought "Right, screw them...my brother's done his best to make agreed payments and still they hound him!"...so he went bankrupt. After the bankruptcy period had ended he repaid me the money I lent him in monthly instalments. He felt an awful lot better after he'd gone through the bankruptcy process.
Marie Thursday, 03 November 2011
I think this is an excellent idea if it happens. It would make life much easier for people going through what is already a particularly stressful time. It would have to be an allowable expense so as not to cause any further hardship. The cost at the moment is a barrier which stops people getting on with their lives and can lead to even more stress, worry and an increased amount of debt!
As featured in:
Are you owed thousands of pounds in mis-sold Payment Protection Insurance (PPI)?
If so we can help you claim in two ways, either use;
-
our free DIY template letters, or
-
a firm to help you with a LOW FEE of 12% + vat
Our recommended firm will handle all the claim on a "No Win, No Fee" basis for a fee of just 12% + vat, which is only payable if you have a successful claim.
It's that simple. Take me to:
