About our fees

At Bridgewood we pride ourselves on offering a great service and value for money. We believe in fairness and transparency and want you to be completely confident that, where a fee is payable, you know exactly how much you are paying and what any fees taken go towards.

If, after reading this page, you require any further information regarding our fees please do not hesitate to give our team a call and they will be more than happy to answer any questions you have.

You can use the menu below to jump to information on specific solutions:

• Our Initial Advice
• Debt Management Fees
• IVA (Individual Voluntary Arrangements) Fees
• Bankruptcy Support Fees

---

Our initial advice

The initial advice we give is completely free and without obligation. We will never charge for the initial advice given to clients, whether through our national telephone based service or in face-to-face meetings via a home visit.

During your initial discussion(s) with Bridgewood we will look at the specific details of your situation and consider what solutions are available to help you. Where appropriate solutions exist we will explain the pros and cons of each, including any fees that will be involved, and help you make an informed choice about what solution is right for you.

Back to Top

---

Debt Management fees

Normally when take out a Debt Management Plan the company you decide to use will charge you fees that fall under two different categories, a set-up fee (usually 1 or 2 months' worth of your payments into the plan) and an on-going monthly fee.

As the set-up fees mean your creditors are not paid during the first month or two of your plan, you fall further into arrears and may be subject to further penalties and charges.

Unlike the majority of commercial Debt Management companies, Bridgewood do not charge any set-up fees.

The only fee we take is our on-going monthly fee (detailed below), meaning your creditors begin receiving payments from the very start of your plan without interruption.

As you can see from the comparison table below we also charge amogst the lowest monthly management fees in the industry, meaning more of your payments are used to pay off your debt, helping you to become debt free quicker.

On-going monthly fee

Our ongoing fee is 15% of each of you monthly payments and is subject to a minimum of £15 and maximum of £75.

How our fees compare against some of our competitors

DMP Company	Set-Up Fee	Monthly Fee	Min/Max Fee per Month	Total Fees Paid Over 2 Years *
Bridgewood	None	15%	Min £15.00 Max £75.00	£540
Gregory Pennington	1 month's payment (min of £225, max of £475)	15%	Min £32.50 Max £85.00	£940
Chiltern	2 month's payment (no min or max)	17.5%	Min £30.00 No Max	£960
Debt Free Direct	2 month's payment (no min or max)	17.5%	Min £30.00 Max £100.00	£960
Harrington Brooks	2 month's payment (min of £295, no max)	17.625%	Min £35.00 Max £100.00	£1070
Baines and Ernst	2 month’s payment (no min or max) £40 annual fee	17.625%	Min £35.00 Max £100.00	£1,110
Debt Advisory Line	2 month’s payment (no min or max) £70 processing fee £50 annual review fee	17.5%	Min £39.95 No Max	£1348.90

* Total fees based on an average monthly payment (DI) of £150 into the debt mangement plan
** Debt Management fees described apply to Consumer Debt Management cases only, business and trade cases are may incur fees which will be provided to you in writing prior to you committing to a plan.

What are your Debt Management fees used for?

Your ongoing monthly fee covers all of the initial work we do to get your Debt Management Plan up and running, as well as the on-going work dealing with your creditors on your behalf to keep your plan running smoothly. This includes:

• Compiling your draft plan
• Appointing your dedicated Personal Finance Manager – your single point of contact
• Communicating with your creditors, both in writing and by telephone
• Preparing your financial statement
• Calculating and issuing your reduced repayment proposals to your creditors, and negotiating with them where necessary
• Distributing your payments to your creditors. You have the convenience of making a single monthly payment to us each month and we do the rest
• Dealing with all correspondence from your creditors on your behalf
• Reviewing your case at least every six months (or whenever you request it) to make sure your payments are always set at the right level
• Using our expertise and good working relationships with creditors to get you the best possible deal and negotiate new agreements whenever your situation changes
• Spending time supporting you to make the most of your financial situation, by helping you get the best deals on your utility bills, insurance and banking, and by making sure that you are claiming all the benefits and tax credits you are entitled to

Back to Top

---

IVA fees

An IVA can only be setup and administered by companies (such as Bridgewood) that employ a licensed Insolvency Practitioner (IP). The IP performs different roles before and then once an IVA is accepted, and there is a specific fee covering each role. These fees are called the Nominee's fee and the Supervisor's fee.

All IVA providers charge these fees in the same way, based on agreed scale that has been set by the creditors. Whereas many IVA companies will propose higher fees initially, only for them to be reduced by the creditors at your Meeting of Creditors, Bridgewood only ever propose fees at a level that we know the creditors will accept.

As a successful IVA proposal can take several months to prepare and be accepted we will always look to provide an interim solution to give our clients immediate debt relief. In the vast majority of cases this takes the form of a Debt Management Plan and in these cases, upon acceptance of an IVA by your creditors, any setup fees paid into the Debt Management Plan will be discounted from the Nominee's fee for the IVA

Example of typical IVA fees

Example based on a typical client, with approx. £31,000 of unsecured debts who completes a 5-year IVA having initially been in a debt management plan with Bridgewood and has no equity in any property.

All fees and expenses are detailed in your IVA proposal so that both you and your creditors will have an opportunity to review them.

What are your IVA fees used for?

Nominee's fee

Before your IVA is proposed to your creditors our IP acts as your Nominee and the fees taken cover the work done in this period. This includes:

• Drafting your IVA proposal, which must be endorsed by our licensed Insolvency Practitioner
• Collecting creditor claims
• Giving notice of and holding the meeting of creditors
• Assessing any changes to the proposal suggested by your creditors

Supervisor's fee

Typically an IVA lasts for 5 years (60 months), during this period the IP's role changes to become your Supervisor. The Supervisor's fee covers all work undertaken in this period, including:

• Distributing payments to your creditors
• Dealing with all correspondence from your creditors on your behalf
• Completing annual reviews of your IVA
• Providing reports to creditors

Please note: You must maintain the agreed payments towards your IVA. If you do not then your IVA may fail, leaving you liable for the remaining balance and any costs already incurred.

If your circumstances change unexpectedly you should contact us immediately so we can assess whether variations to your IVA need to be proposed.

Back to Top

---

Bankruptcy support fees

If you decide to file for Bankruptcy there are three fees you may have to pay. These fees are separate to any fees charged by Bridgewood

1. The Court fee of £150
   In some circumstances the Court may waive this fee; for example, if you are on Income Support. If you are not sure whether you qualify for a reduction in the fee, or if you are exempt from paying the fee, Court staff will be able to advise you.
2. The deposit of £450 towards the costs of administering your bankruptcy.
   This deposit is payable in all cases.
3. The fee to swear the statement of affairs.
   In a County Court, no charge is made to swear the affidavit, which is part of your statement of affairs. But in the High Court or before a solicitor there is a £7 charge.

Bridgewood offer a Bankruptcy Support service (detailed below) which carries a fee in addition to those listed above. For a standard single bankruptcy the fee is £250 and for a joint bankruptcy the fee is £350. For complex, non-standard cases the fee will be calculated on an adhoc basis

What your Bankruptcy support fee is used for?

Our Bankruptcy Support Service is designed to support you throughout your bankruptcy and includes:

• Completing your Bankruptcy Petition & Statement of Affairs documents
• Arranging your court hearing
• Providing ongoing support throughout your bankruptcy, including access to our Insolvency Practitioner and team if required
• Providing a full financial review to ensure you are in the best possible position to make a fresh start

Back to Top