Tag Archives: informal arrangement

Debt Counselling – If you want a sensible alternative to bankruptcy but are unsure where to turn, you may be an excellent candidate for credit counselling. As rates of consumer debt have grown over the past decade, debt counselling services have grown along with it. The best debt relief services can help consumers to dig themselves out of the hole they find themselves in.

Informal arrangement – You could consider writing to all your creditors to see if you can reach a compromise. Include a timetable of when you will repay them.

Individual voluntary arrangement – This is a formal version of the previously described arrangement. You would need to apply to the court with the help of an authorised insolvency practitioner. He or she would supervise the arrangement and pay your creditors in line with the accepted proposals

Administration orders – If one or more of your creditors has a court judgement against you and if your total debts are £5,000 or less, the county court could make an administration order. Under the administration order, you make regular payments to the court, which will then pay your creditors. While you are paying the administration order, your creditors can’t take any further action against you to get their money, without asking the court first. Also, you will not have to pay any interest on your debts. You will have to pay a fee for an administration order, but this will be added to the money you already owe and not charged separately.