Arrangement with creditors admin
Arrangement with creditors
What is an informal arrangement with creditors?
An informal arrangement with creditors is an agreement between you and your creditors to repay your debts with a reduced monthly payment.
These types of arrangements are not court ordered or approved, and are suitable for people who are experiencing debt problems but are likely to be able to make the normal repayments again in the near future, normally in a few months. The informal arrangement may be an effective solution for people with short-term financial problems.
Creditors may agree with what you propose to repay on a temporary basis.
Creditors canâ€™t refuse any payments you make to them.
You can negotiate reduced repayments yourself without having to contact a debt advice provider.
Creditors may be prepared to write off the balance of what you owe after a period of time if you have shown that you have made every effort to pay them back as much as you can, and you have maintained regular payments to them.
Creditors donâ€™t have to agree with what you propose.
Creditors donâ€™t have to freeze interest or charges.
If you can only afford small payments, they may not be enough even to cover interest or charges, and your debts will increase.
You remain liable to pay the full amount of your debts.
Creditors may take debt recovery and legal action against you.
You are responsible for keeping creditors informed of your circumstances.
How we can help
An informal arrangement with creditors is a self-made repayment plan. The idea is you should be ableÂ to negotiate with the creditors yourself. We can provide general information and advice on how this can be done.
We provide information and advice in relation to debt solutions available in England and Wales.
There is no charge for the initial financial review and initial consultationÂ over the phone. However, if you decide to go ahead with our bankruptcy assistance service fees will be payable. Click here for further details on our fees.
You have a 14 days cooling off period from the commencement of our service. If you decide to cancel the service during this time, we will refund you any fees paid to us by you for the service.
If you are made bankrupt, your property and assets could be at risk and your credit rating will severely be affected for six years. Click here for details on bankruptcy restrictions.
For further information about bankruptcy we recommend the Insolvency Serviceâ€™s booklet â€śGuide to bankruptcyâ€ť. The Insolvency Services also produces a guide which explains the various debt solution options. You can read it here: â€śIn Debt? Dealing With Your Creditorsâ€ť.
If you wish to know where to get free debt counselling and debt management services you should contact the Money Advice Service.