What services do you offer?
We offer debt advice tailored based on your individual circumstances. We will ask about your current financial situation and your lifestyle, which will allow us to advise the most suitable solutions available to you.
Although we offer advice on all debt help solutions available, we specialise in Debt Management Plans.
What fees are involved?
Each solution has its own fees attached and are tailored for each individual arrangement. 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 as quickly as possible.
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 0121 325 3800.
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 of any fees still held by Back2Credit.
The Cost of Back2credit’s Debt Advice
We don’t make any charge to you for any debt advice given, 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. If you decide a Debt Management Plan (DMP) managed by Back2Credit is your best option, we have a monthly fee as outlined below.
Debt Management Plan Fees
Our debt management plans have two types of fees:
Initial set up fee which is 50% of each of 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 each of the 1st two months which would be a total of £100 set up fee with the other £50 per month being paid directly to your creditors. 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 example: if you are paying £100 for a DMP, your fee is £32.50 with the remaining £67.50 being paid to your creditors. For this payment you get the following:
- 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.
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 the IVA Proposal together 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) and is included within your monthly contributions.
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. All fees are included in your monthly contributions.
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
- 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.
Call us FREE Today 0121 325 3800 to get professional and confidential debt advice.
Let us offer you the best debt solutions available for your personal situation.