What is the Debt Review Fees Structure?
The fee structure varies among the debt counselor for the debt review but still there is some degree of similarity in terms of the application fee, legal fees and restructuring fee. All the consumers have to pay $50 which is the application fee i.e. Form 16; this form is submitted with all supporting documents and registration fee. The restructuring fee usually equals to the lesser of the first installments of the debt rearrangement plan or may be charged $3000 excluding VAT but in case of couples or joint application the restructuring fee is $4000 excluding VAT. The payment of restructuring fee is done on the day on which next salary is received. The legal fees that the debt counselor can charge should be in compliance with the Section 86 (8) of the National Credit Act which states that the debt counselor must record the accepted proposals in the form of a consent order. The monthly payments are made by the consumer to the Payment and Distribution Agency (PDA). In case of withdrawal from the process, the consumer will have to pay a rejection fee of $300.
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