What are Informal Arrangements
Informal Arrangements are simply that-arrangements made informally, between Debtor and Creditor, not involving the use of Formal (legally binding) processes, like Court Judgements, IVA’s or Bankruptcies for example.
A major benefit of Informal Arrangements is that the Debtor can represent himself/herself and negotiate a settlement/payment plan, face to face with a Creditor/s. There are no costs involved and no “middle” representatives taking entrenched positions.
The disadvantage, is that Informal Arrangements are not legally binding and can be set aside at any time by the Creditor, due to impatience, a change of circumstances or management, or in some cases, pure bloody mindedness.
Accepting you have a problem early and dealing with it quickly and directly, is a good option. Often though, the problem is left to fester and this option, which needs goodwill on both sides, is no longer a practical solution.
Payment and Debt Consolidation Plans are alternatives, to be considered, but choose carefully which Management Company you use. Always check their licence and validity and always ask to speak to people they have represented. Beware the costs and monthly charges and accept that taking on more debt is never the best option.
Where to Go for Help and Advice.
There are 100′s of websites/companies offering debt advice and solutions-just choose wisely. The following reputable organisations provide free advice and are worth contacting.
Phoenix & Co offer free, independent advice to local South West businesses. Licensed Recovery & Insolvency Practitioners. Telephone 01392 314092. Web is www.phoenixing.co.uk
Business Debtline is a charity that provides free telephone help for the self-employed and small businesses facing financial difficulties. Helpline on 0800 197 6026. Web is www.bdl.org.uk
Citizens Advice (CAB) is a charity that offers free, independent and confidential advice from more than 700 offices throughout the UK. Helpline on 0207 833 2181. Web is www.adviceguide.org.uk
Consumer Credit Counselling Service (CCCS) is a charity providing free counselling and money-management help to families and individuals. Helpline on 0800 138 1111. Web is www.cccs.co.uk
The Insolvency Service is a Government agency that covers all insolvency matters and provides excellent advice on the telephone 0845 602 9848, or via their website at www.insolvency.gov.uk
National Debtline offers free, independent and confidential advice over the telephone. Helpline is 0808 808 4000. Web is www.nationaldebtline.co.uk