Informal Arrangements
What is an Informal Arrangement?
An informal arrangement is often sought when a more formal insolvency agreement such as an IVA (Individual Voluntary Agreement) or a bankruptcy order aren’t possible.
- Informal arrangements are best for UK residents in debt, but with a low monthly disposable income (i.e. under £50 or £100).
- They can be set out over a short or a long term period, depending upon your debt amount and your monthly disposable income.
- Based on an informal agreement between the debtor and the creditor, a reduced or lower amount is paid back.
- It is seen as a good choice for those struggling to make repayments due to the rates set out by credit card or loan companies.
Who Can Benefit From an Informal Arrangement?
- Those with low disposable income but difficulties in repaying debts.
- Those who are expecting some form of financial difficulty within their household, such as increases in living expenses or reduced monthly income.
- Those who cannot meet the agreed monthly repayments on their debt following a full income and expenditure analysis.
What are the Benefits of an Informal Arrangement?
- Because it is unnecessary for a county court approval, an informal arrangement is so much quicker and easier to set up than many other debt solutions.
- Informal arrangements are free to set up.
- Informal arrangements can be adjusted, as and when your financial position changes.
- Informal arrangements can be tailored over short or long term periods.
What are the Drawbacks of an Informal Arrangement?
- An informal arrangement is a non legal agreement.
- It may be refused or dismissed if the creditor does not approve of it.
- The informal arrangement may be subject to withdrawal by creditors following their monthly reviews.
- Upon application, creditors may seek legal or collection procedures as it is a sign of debt.
- Informal arrangements are less likely to be successful when dealing with larger numbers of creditors.
How Can I Set Up an Informal Arrangement?
- Contact the Insolvency Helpline (see contact details below) and a member of the informal arrangement team will perform a detailed income and expenditure analysis to assess whether it is a suitable route for you.
When Can I Call?
- You can call the debt helpline any time; 24 hours a day, 7 days a week, 365 days a year.
How Can I Get Help with Debt Solutions?
- Call us free on 0800 0789 544.
- Email: info@e-insolvency.co.uk
