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Fees Charged by Debt Agreement Administrators Fees charged by Debt Agreement Administrators Set up fees Set up fees for debt agreement proposals range from $500 to about $1,900, although they can be more than $1900 depending on the complexity and hence the extent of work involved in setting up the proposal. Some administrators charge no set up fee but may have a higher fee to administer the debt agreement whilst some administrators with set up fees may charge a lower fee to administer the agreement. Set up fees are charged by administrators for – providing information to debtors about the options to deal with their unmanageable debt and the consequences; to help debtors access “hardship assistance” with banks and finance companies; assistance with the debtor’s budgeting; speak to creditors on behalf of debtor’s to get up to date details of their debts for preparing a debt agreement proposal explain the debtor’s circumstances and the reason why the creditors should “vote for” the proposal; and preparing and lodging the debt agreement proposal forms with ITSA from information provided by the debtor. Some administrators charge the set up fee whether or not the creditors vote for the proposed debt agreement; other administrators only charge the set up fee if the creditors vote “yes” for the proposed debt agreement. Any payment or debt relating to set up fees needs to be disclosed in the debt agreement proposal. Fees to administer the debt agreement Debt agreement administrators will usually charge a fee for administering a debt agreement once accepted by creditors. By law these fees must be expressed both as a dollar amount and as a percentage of the payments to be made by the debtor once the debt agreement proposal is accepted. Fees currently charged range from 18% to 30%, although the majority of registered administrators charge around 20%. Administrators collect the fee as a percentage of each payment made by the debtor or a percentage when paying a dividend to creditors. If payments are not made by the debtor, the administration fee cannot be collected. Expenses are recoverable only where the terms of the debt agreement provide for this and where creditors have voted in favour of the agreement. When choosing an administrator, debtors are encouraged to compare the dollar amount and percentage charged for fees and understand exactly what services will be provided. For example, does the fee include – Assistance with using a budget Preparing a variation proposal where the debtor’s circumstances change Ongoing guidance with the agreement Responding to reasonable requests from creditors Stopping garnishees on wages and creditors continuing to ask for payment Any queries about fees charged, please contact our Information Service on 1300 364 785.

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