What is an Informal Arrangement?

If you’re in serious debt and experiencing major difficulties in paying your creditors you may wish to enter an Informal Arrangement with them. But check with the Debt Advice Trust first to see whether a more formal debt solution such as an IVA (Individual Voluntary Arrangement) would be a better option for you.

Unlike an IVA, an Informal Arrangement is where you yourself approach your creditors to make them fully aware of your financial situation and to see whether they will accept lower repayments until your circumstances change and you can meet the full repayments. Or you could choose a Debt Management Plan where somebody will do this for you. We can help advise you on this as well.

Is an Informal Arrangement right for you

Before considering an Informal Arrangement and alerting your creditors to the full extent of your problems, you should call the Debt Advice Trust. As a registered not for profit organisation, we’ll give you expert, honest and impartial advice so that you can make up your own mind as to whether an Informal Arrangement is the best debt solution for you.

What you should know about an Informal Arrangement

If you want to consider an Informal Arrangement, you need to bear in mind that your creditors may only agree to one for a few months only and can change their minds at any time. It may be better to consider an IVA, Debt Management Plan or another debt solution. Talk to the Debt Advice Trust to find out more.

Informal Arrangements FAQ's

• Q: What if my creditors won’t agree to an Informal Arrangement?

  A: This is quite possible as they are under no obligation to accept reduced debt repayments. You would then need to find another debt solution very quickly, which is why you should talk to the Debt Advice Trust first.

• Q: Will my creditors know I am talking to the Debt Advice Trust?

  A: No, you can speak to our Debt Counsellors in total confidence at a time that suits you. Call the Debt Advice Trust anytime between the hours of 8.00 a.m. and 8.00 p.m. Monday to Friday, or 9.00 a.m. and 5.00 p.m. on Saturday.

More debt FAQ's