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Fees & Information

What fees are involved?

This depends entirely on your own personal circumstances and dependent on the debt solution recommended by our expert debt advisors. As a debt solutions provider, we are committed to giving the best customer service at a low price in order to get you out of debt quicker than our competitors.

Will my credit rating be affected?

Your ability to obtain credit will be affected in the short term and could be affected in the medium to long term. To discuss further call our expert debt advisors on 0800 092 0455.

What happens if I change my mind or want to cancel?

You are not under any financial obligation to enter a debt solution, but just in case you have second thoughts we offer a 14 day cooling off period, therefore you can cancel the agreement at any time during this period and if you have paid your initial fee you will receive a full refund.

Debt Management Plan Fees

Our debt management plans have two types of fees:

Initial set up fee which is 50% for your 1st two monthly repayments. For example if you are paying £100 on a DMP then the initial set up fee would be £50.00 for the 1st two months which would be a total of £100 set up fee. For this payment you get the following:

  • Checking and completing the payment plan we created during the initial discussions
  • Creating your financial statement
  • Sending creditor payment proposals
  • Making pro-rata payments to your creditors
  • Negotiating with each lender to agree a reduced plan
  • Setting up regular payments to your creditors
  • Allocating you with a customer account manager who will guide you through the setup of your plan

Monthly management fee which is £32.50 or 16.5% whichever is greater subject to a maximum of £100.00. For this payment you get the following:

  • This covers reviewing and acting on the lender correspondence we receive on your behalf.
  • Updating your plan to deal with any debt that have been passed debt collection companies and negotiating with them
  • Distributing your monthly payment to your creditor’s
  • Preparing and sending payment advice

 

IVA Fees and Costs

There are two sets of fees which are charged for an IVA: The Nominee's fee and the Supervisor's fee. No other fees are charged.

The Cost of an IVA: Nominee's Fee

The Nominee's fee covers the time and expertise needed to consult with you and establish your income and expenditure, assets and liabilities in order to put together the IVA Proposal which is submitted to your creditors. The Nominee represents you from the beginning of your instructions to help you put a proposal to your creditors until the creditor's meeting and, if the proposal is accepted, your Nominee becomes your Supervisor thereafter.
The Nominee's fee can typically vary from £1,000 to £2,220 depending on your creditor’s agreement. This will be drawn over the first year of the arrangement (usually within the first five months). 
If you are a sole trader, partner in a business or have complicated affairs, the Nominees fees may occasionally be higher - but we will explain the reasons for this if they are higher than as previously stated.

The Cost of an IVA: Supervisor's Fee

In addition to the above, following approval of the IVA, a monthly Supervisor's fee will be taken. The Supervisor's fee covers the specialist work carried out throughout the duration of your IVA (normally a five year period) to ensure it is managed correctly and ethically. You will have appointed a Personal Supervisory Advisor who will manage the day to day running of your account who is qualified to help you should any changes to your circumstances affect your ability to pay your monthly IVA contribution. Furthermore, your Supervisor will conduct annual reviews throughout your IVA term to ensure payments are still affordable and to address any variations that may be needed.
The Supervisor fees are never more than a maximum of 18% of all the contributions you make over the period of the IVA, taken monthly, in fulfilment of the supervisory role.

The Cost of Back2credit’s IVA Advice

We don't make any charge to you for any debt advice given prior to the IVA being prepared however if we feel an IVA would be a suitable solution for you we will pass you through to our IVA provider and if you decide to go ahead with an IVA they would pay us a fee for this referral.

 

Bankruptcy fees

In order to go bankrupt in the UK, you have to pay bankruptcy fees to the court.
Bankruptcy fees in the UK comprise a court fee and a bankruptcy deposit.

In England and Wales:

  • the court fee is £180 and
  • the bankruptcy deposit is £525

In Northern Ireland:

  • the court fee is £115,
  • the bankruptcy deposit is £525, and
  • there is a solicitor’s fee of £7

In Scotland:

  • Sequestration (Scottish bankruptcy): the Accountant in Bankruptcy fee is £200
  • Minimal assets process (MAP) bankruptcy: £90 application fee
  • Low income low assets (LILA) bankruptcy: £200 fee

If you are on a low income or receive certain benefits, the court fee may be waived. Whatever your circumstances, the bankruptcy deposit always has to be paid.
Once you have petitioned for bankruptcy, the official receiver will look through your finances and decide if you need to pay anything towards your debts. You may have to pay a monthly contribution towards your debts for up to three years. This is called an income payment arrangement. It is payable if you have available income of more than £20 per month after paying your household bills and essential living costs.
The official receiver will not make you pay anything towards your bankruptcy if you cannot afford to, and will always leave you with enough money to live on each month.
If you have any valuable items, such as property, a vehicle, jewellery or savings, the official receiver may arrange for them to be sold, and the money generated will be used to pay back some of your debts.

 

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