An Informal Arrangement

There are a number of alternatives to bankruptcy which you may wish to consider.   One such option is to enter into an "Informal Arrangement" with your creditors.

Benefits of an Informal Arrangement

If you know that you cannot pay all your debts, you could consider writing to your individual creditors to see if you can reach some compromise. Include a timetable of when you will repay them.

The disadvantage with an informal arrangement is that it is not legally binding so your creditors could ignore it later and ask you to pay in full.

Advantages and disadvantages of an informal arrangement:

• The creditors are under no obligation to accept the offer of reduced payments

• If the creditors accept the arrangement they can change their mind at any time
   

• If they do accept it is likely to be on a short term basis, however it could provide effective breathing space for the short term.
  
  If you want to consider this and require assistance in writing to your creditors, contact us now on 0845 890 2277 

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Other solutions:

IVA's

Administration Orders

SPEAK TO REGULATED Insolvency solicitors IF AT ALL POSSIBLE. The credit management industry is notoriously unregulated and this can make it difficult to obtain good advice.