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Our fees, clear and simple

At Baines & Ernst, we help people clear debt by offering the highest standard of service, expert debt advice and affordable solutions.

Our fees depend on your personal circumstances and the solution entered into. We’re always honest and upfront about these costs.

Click to learn more about our fee structure for all of our debt solutions.

Or call us and speak to one of our friendly advisors for more information.

Debt Management Plans

Set-up-fee

The Set-up fee is £240 for all customers and is taken in instalments from your Monthly payment as set out in the table below.

The instalments are calculated by reference to your Disposable income, which is the amount we work out you have available to repay to your lenders each month.

If your disposable income is Amount of monthly instalment No. monthly instalments
£100 – £109 £10 24
£110 – £119 £15 16
£120 – £139 £20 12
£140 – £159 £30 8
£160 – and above £40 6

(The amounts set out in the table above have been calculated to ensure that we always distribute at least 50% of your Monthly payment to your lenders.)

  • Checking and completing the Monthly payment plan we created during our initiial discussions
  • Creating your financial statement
  • Sending each Lender a reduced payment proposal (Lender Proposal Document)
  • Negotiating with each of your unsecured Lenders to agree a reduced payment proposal and requesting that they freeze interest and charges on your debt balances
  • Setting up regular payments to your Lenders
  • Providing budgeting help and advice
  • Allocating a customer account manager who will guide you through the set up of your Monthly payment plan.

Service Fee

The Service fee is a payment you make to us in each month of your Monthly payment plan and is an amount equal to 20% of your Disposable Income, subject to a minimum of £40 and a maximum of £100 each month.

  • Review and act on Lender correspondence we receive on your behalf
  • Update your Monthly payment plan to deal with any debts that have been transferred to debt collection companies and negotiate with them
  • Distributing the agreed payments to your Lenders from your very first Monthly payment
  • Prepare and send to you your regular payment advice
  • Update your Monthly payment plan to take account of any change in your circumstances and renegotiate your payments to Lenders if necessary
  • Safeguard your money in a protected client account whilst we hold it.
What you pay How it’s calculated What you get for your money
Set-up Fee The Set-up fee is £240 for all customers and is taken in instalments from your Monthly payment as set out in the table below.The instalments are calculated by reference to your Disposable income, which is the amount we work out you have available to repay to your lenders each month.

If your disposable income is Amount of monthly instalment No. monthly instalments
£100 – £109 £10 24
£110 – £119 £15 16
£120 – £139 £20 12
£140 – £159 £30 8
£160 – and above £40 6

(The amounts set out in the table above have been calculated to ensure that we always distribute at least 50% of your Monthly payment to your lenders.)

This is retained by us and covers the work that goes into setting up your debt management plan including:
Creating your financial statement
Sending each Lender a reduced payment proposal (Lender Proposal Document)
Negotiating with each of your unsecured Lenders to agree a reduced payment proposal and requesting that they freeze interest and charges on your debt balances
Setting up regular payments to your Lenders
Providing budgeting help and advice
Allocating a customer account manager who will guide you through the set up of your Monthly payment plan.
Service Fee The Service fee is a payment you make to us in each month of your Monthly payment plan and is an amount equal to 20% of your Disposable Income, subject to a minimum of £40 and a maximum of £100 each month.As described above, your Disposable Income is the amount we work out you have available to repay to your lenders each month.We will take our Service fee from each Monthly payment throughout the lifetime of your Monthly payment plan. On an ongoing basis over the lifetime of your Monthly payment plan we will:
Review and act on Lender correspondence we receive on your behalf
Update your Monthly payment plan to deal with any debts that have been transferred to debt collection companies and negotiate with them
Distributing the agreed payments to your Lenders from your very first Monthly payment
Prepare and send to you your regular payment advice
Update your Monthly payment plan to take account of any change in your circumstances and renegotiate your payments to Lenders if necessary
Safeguard your money in a protected client account whilst we hold it.

A breakdown of typical payments and fees on a Debt Management plan (DMP)

Unsecured Debt: £7,440
Plan length: 48 months
Monthly payment (including fees): £200
Set-up fee: £240
Monthly service fee £40
Total amount paid over the term (includes fees) £9,600
The above example assumes that lenders have frozen all interest and charges

IVA Advisory Services and IVA Fees

IVA Advisory Service Fee

This is the equivalent to 2 months of your calculated disposable income. This is retained by us and covers the work that goes into providing the IVA Advisory Service including:

  • Assessing and analysing your financial position to advise on the most appropriate option for your particular situation.
  • Gathering and reviewing the documentation needed to draw up your IVA proposal.
  • Our professional services and passing your case to a licensed Insolvency Practitioner.

Nominee’s fee

This is a fixed fee and is decided by your creditors. Your first few monthly payments make up this fee before your creditors receive any money.
This covers the work and legal costs that goes into setting up your IVA – a process which includes:

  • Drawing up your IVA proposal. This is the document which must be approved by enough of your creditors for your IVA to start.
  • Setting up the creditors meeting. At this meeting your creditors will decide whether to formally approve your IVA proposal, reject it, or request changes to it.
  • Assessing any suggested changes. If creditors have requested changes to your IVA proposal, your Insolvency Practitioner will advise you on whether you should accept those changes – or consider a different approach to your debt problems.

Supervisor’s fees

A fixed percentage of each monthly payment. This percentage is decided by your creditors.
This covers the ongoing supervision and maintenance of your IVA up until completion. It covers:

  • Managing any day to day issues that may arise to ensure your IVA runs smoothly
  • Your Insolvency Practitioner will carry out regular reviews and address any more serious issues with you that may come up. If your situation changes and you need to adjust your IVA accordingly, your Insolvency Practitioner will take care of this.
  • Supervisor’s expenses such as legal and administration costs.
What you pay How it’s calculated What you get for your money
Advisory Service Fee Equivalent to 2 months of your calculated disposable income This is retained by us and covers the work that goes into providing the IVA Advisory Service including:
Assessing and analysing your financial position to advise on the most appropriate option for your particular situation.
Gathering and reviewing the documentation needed to draw up your IVA proposal.
Our professional services and passing your case to a licensed Insolvency Practitioner.
Nominee’s fee This is a fixed fee and is decided by your lenders. Your first few monthly payments make up this fee before your lenders receive any money. This covers the work and legal costs that goes into setting up your IVA – a process which includes:
Drawing up your IVA proposal. This is the document which must be approved by enough of your lenders for your IVA to start.
Setting up the lenders meeting. At this meeting your lenders will decide whether to formally approve your IVA proposal, reject it, or request changes to it.
Assessing any suggested changes. If lenders have requested changes to your IVA proposal, your Insolvency Practitioner will advise you on whether you should accept those changes – or consider a different approach to your debt problems.
Supervisor’s fees A fixed percentage of each monthly payment. This percentage is decided by your lenders. This covers the ongoing supervision and maintenance of your IVA up until completion. It covers:
Managing any day to day issues that may arise to ensure your IVA runs smoothly
Your Insolvency Practitioner will carry out regular reviews and address any more serious issues with you that may come up. If your situation changes and you need to adjust your IVA accordingly, your Insolvency Practitioner will take care of this.
Supervisor’s expenses such as legal and administration costs.

You pay a fixed monthly amount based on what you can afford. The fees do not affect the amount you pay each month or the length of the arrangement

A breakdown of typical payments and fees on a Individual Voluntary Arrangement (IVA)

Total debt £31,060
with an IVA 60 monthly contributions of £200
Total paid £12,000
Total written off £19,060
Included in monthly payment:
Nominee’s fee £1,000
Supervisor’s fee £1,650
Supervisor’s expenses £290
Example based on a typical customer, with approx, £31,060 of unsecured debts who completes an IVA lasting 5 years and has no equity in a property

PTD Advisory Service and PTD Fees

Administration Payment

This is the equivalent to 2 months of your calculated disposable income. This is retained by us and covers the work that goes into providing the PTD Advisory Service including:

  • Assessing and analysing your financial position to advise on the most appropriate option for your particular situation.
  • Gathering and reviewing the documentation needed to draw up your PTD proposal.
  • Our professional services and passing your case to a licensed Insolvency Practitioner.

PTD Fee

This monthly fee is variable dependent on your monthly contribution and the agreement reached with your creditors. This fee covers the costs of administering the Trust Deed – a process which includes:

  • Setting up the Trust Deed
  • Drawing up your PTD proposal and presenting this to your creditors
  • Ongoing supervision and maintenance of the agreement. This includes regular reviews of the agreement and making any adjustments if your situation changes

You pay a fixed monthly amount based on what you can afford. The fees do not affect the amount you pay each month or the length of the Trust Deed.

What you pay How it’s calculated What you get for your money
Administration Payment Equivalent to 1 month’s of your calculated disposable income This is retained by us and covers the work that goes into providing the PTD Advisory Service including:
Assessing and analysing your financial position to advise on the most appropriate option for your particular situation.
Gathering and reviewing the documentation needed to draw up your PTD proposal.
Our professional services and passing your case to a licensed Insolvency Practitioner.
PTD Fee This monthly fee is variable dependent on your monthly contribution and the agreement reached with your lenders. This fee covers the costs of administering the Trust Deed – a process which includes:
Setting up the Trust Deed
Drawing up your PTD proposal and presenting this to your lenders
Ongoing supervision and maintenance of the agreement. This includes regular reviews of the agreement and making any adjustments if your situation changes

A breakdown of typical payments and fees on a Protected Trust Deed (PTD)

This example is based on a typical customer with approximately £23,000 of unsecured debts who completes a PTD lasting 4 years and has no equity in their property.
All fees payable to a Trustee are calculated on a case-by-case basis and agreed with you and your lenders in advance.
Total unsecured debts included in a PTD £23,000
Typical monthly payments (x48 months ) £180
Total fees (as agreed with you)
Trustee fee £2,500
Supervisory fee £1,282
Expenses / Disbursements fee £1,631
Discharge fee for negative equity in property £500
(These fees are deduced over 48 months from your monthly payments)
Total amount paid over 48 months £9,140
Total unsecured debt written off on completion of PTD £13,860
(66%)

Bankruptcy Fees

£450 for new customers, £675 for couples or in some cases, free to existing Baines & Ernst customers.

What you will get for your money:

The Bankruptcy Support Service will lessen the stress and confusion of the form completion process, reduce the necessity for you to have direct contact with your lenders and provide support and guidance throughout the bankruptcy process.

You will have to pay a Bankruptcy fee when you take your Petition and Statement of Affairs to the Court. This fee is made up of two parts.

The court fee of £180

In some circumstances the court may waive this fee; for example, if you are on Income Support. (If you are unsure if you qualify for a reduction in the fee or whether you are exempt from the fee, court staff will be able to advise you of this).

The Official Receiver’s Fee or deposit of £525

This must be paid in all cases and helps meet the Official Receiver’s costs of administering your Bankruptcy.

DRO Fees

We’re committed to helping everyone we speak to with their finances, that’s why we offer our Debt Relief Order Service free of charge.

With a Debt Relief Order there is a one off application fee of £90, there are no monthly charges. This fee is paid by you to the Insolvency service, not to Baines & Ernst.

Debt Settlement Fee

The Debt Settlement service depends on your financial circumstances and is subject to lenders agreeing to the Settlement.

If your lenders agree to the repayment at a reduced rate, they are agreeing to write off a proportion of your debts. Fees do apply for the debt settlement service, these fees will be provided to you in advance.

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Money Advice Service

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.