01224 625554

Informal Arrangement

You may wish to avoid a formal process and to deal with your creditors directly or have an advisor such as the Citizens Advice Bureau, a licensed insolvency practitioner or a debt management company, to do so on your behalf.

Should you wish to speak to a member of our team further about organising an informal arrangement with your creditors then call us today on 01224 625 554.

Main advantagesMain disadvantages
• Can be undertaken by you
• There may no charge if arranged by you or with the help of certain money advisors (for example stepchange, citizen’s advice bureau)
• Can relieve pressure from creditors
• Creates a repayment programme that all parties are content with
• May not have an adverse effect on your credit rating
• Creditors do not have to agree
• There is no guarantee that creditors will accept your proposals
• Interest and charges will continue to accrue unless agreed otherwise
• Many advisors and debt management companies will charge a fee for providing help
• If your situation changes are you are unable to maintain your instalments, you may have to start all over again
• Creditors can continue to take legal action against you

Informal Arrangement – frequently asked questions

  1. Can I go to prison for non-payment of a debt?

    No, you cannot go to prison for failing to pay a debt. If you are charged and convicted of fraudulent activity then you may receive a jail sentence.

  2. How much should I offer to pay to my creditors?

    Realistically, the smallest amount that can be offered to creditors is £5 per month, however this would most likely mean it may take years to clear your debts and some creditors may not accept these proposals.

  3. If I organise a debt management plan to deal with my debts, can creditors still add interest and charges to what I owe?

    Yes, your creditors are not legally obliged to freeze interest or charges.



We should be able to help you but require a little more information. Please click here and complete the form to send to us.

We may not be able to act for you but would be happy to discuss your financial affairs in order to point you in the right direction. Please feel free to contact us on 01224 625554 for a free, no obligation, confidential consultation.