Informal Arrangement / Debt Management

If you cannot pay your debts as and when they are due you could consider writing to all your creditors to see if you can reach an informal compromise to pay them over an agreed period.

It is very hit and miss whether creditors will agree to this. Citizens Advice and other agencies are particularly helpful in assisting people to reach such agreements. These agreements are not generally legally binding and the interest accruing could be high. The creditors can also change their minds later on.

Many businesses offer debt management services and they generally charge a fee. There are many pitfalls with these schemes so we advise caution. We can provide the service but we have reservations. We will always fully explain why and will be happy to recommend a free agency.

Administration Order

If one or more of your creditors has obtained a county court judgment against you, the county court may make an administration order. This is a court procedure where you make regular payments to the court towards the total sum you owe your creditors.

Amongst other things your total debts must not exceed £5,000 and you will need enough regular income to make weekly or monthly repayments. This procedure is therefore very limited as regards who it may apply to.

Individual Voluntary Arrangement (IVA)

An IVA is a formal procedure backed by the court. It is generally useful for people who do have some money to give their creditors each month.

If your creditors agree to an IVA, some of your debt may be written off. An IVA is legally binding on you and your creditors, and if you break the terms of the IVA you could be made bankrupt. Your proposal is key to the success. We can help with the terms to offer.

There are many advantages and disadvantages to this procedure. We suggest caution so that you know if it is suitable for you. There has been a lot of criticism in the press about businesses mis-selling these schemes and making false promises. We will outline the facts and risks to help you decide if it is suitable.


This is generally seen as the last resort option. However, it is common for us to change peoples view of this procedure when we outline an unbiased view.

There are many restrictions and many implications but for some people it may be better than trying to make regular payments they can ill afford. Bankruptcy law has developed over many years so despite what many people hear there are no fool proof ways to avoid the wide sweeping powers of the law. However, there are many ways to protect your interests within the law particularly when it involves your house or your income.

There are many advantages and disadvantages in bankruptcy and we explain all prior to you making a decision.

Official information about bankruptcy is generally quite good but there are many things you may not be told so it is always best to seek advice before any Trustee attempts to take from you what they may not be entitled. Equally important is who is advising the rest of the family to protect their interests? We can provide numerous examples of how people can get caught out!