Two different figures to understand
The monthly contribution is the amount you agree to pay. The trustee’s fee is a cost of administering the arrangement, taken from the money realised. They are related, but they are not interchangeable.
A “no upfront fee” message does not mean a trust deed is free. Ask to see the full written fee structure and any asset contribution, not only the monthly headline.
How contributions are assessed
The insolvency practitioner uses the Common Financial Tool to assess income and necessary expenditure. Supply accurate records rather than trying to make a target payment work.
Prepare a monthly budget that includes irregular but foreseeable costs. An annual insurance payment, school uniform replacement or necessary car repair should not be forgotten simply because it was absent from last month’s statement.
Our budget worksheet subtracts the costs you enter from income. It does not reproduce the Common Financial Tool, apply its expenditure guidance or determine your legal contribution.
What the trustee charges
AiB guidance describes a fixed administration fee and an additional fee calculated as a percentage of the assets and contributions realised. The fixed amount and percentage must be set out in the documents circulated to creditors. Certain expenses may also be charged to the estate.
This is why two totals are useful: what you contribute and what is expected to reach creditors after costs. Ask for both. Do not treat an advertised write-off percentage as a complete cost comparison.
A simple arithmetic example
Suppose an arrangement required £180 each month for 48 months. Those monthly payments would total £8,640.
That example tells you only the payment total. It does not predict the fee, dividend, debt written off or the treatment of assets. A separate property contribution or a change in payments would alter the overall commitment. £180 is an illustration, not a recommended or typical payment.
Can the payment change?
Your finances are reviewed at least annually, and a change in income or necessary expenditure can lead to a different contribution. Tell your trustee about a change promptly; do not wait for the annual review if you cannot afford the next payment.
See annual reviews and missed payments for practical preparation.
Questions to ask about a quotation
- What are the fixed fee, percentage fee and estimated expenses?
- What total contribution is expected from income and assets?
- Are the assumptions realistic if my rent, hours or caring costs change?
- How much is expected to be distributed to creditors?
- What happens to costs already paid if the arrangement fails?
- Is a Scottish alternative more appropriate when the total commitment is considered?
Keep the written answers with the proposal. If the explanation is unclear, seek independent advice before signing rather than relying on a verbal reassurance.
Sources & further reading
Sources checked for this guide on 6 September 2026. Follow the original guidance for full detail.
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