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, CVA’s or Liquidations 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.