If you have unsecured debts (such as Credit Card Debt, Store Card Debt, or Finance Arrears) which you can't pay, you may need to consider a Debt Agreement. A Debt Agreement is an alternative to bankruptcy. Please view the Debt Agreement thresholds to see if your circumstances suit a Debt Agreement. If you exceed the Debt Agreement Thresholds you can apply for a Personal Insolvency Agreement.
A Debt Agreement is a legally binding agreement with your creditors which must first be approved by them. In most cases we recommend a Debt Agreement over a three to five year period. We will put your proposal to your creditors and in many cases they will accept to receive something less than full payment. Once approved by your creditors, a Debt Agreement will protect you against any further legal action which they may have been entitled to take against you, which may have resulted in your bankruptcy.
With a Debt Agreement, you agree with your creditors what you'll pay over the term of your agreement. Not all creditors need to vote in favour of the proposal but at least 50% (in value) of those creditors who vote by way of a postal vote. We will arrange the necessary documents and lodge all of the necessary documents on your behalf. If the voting requirements are met the Debt Agreement will become legally binding on all creditors. Once approved, the interest on your debts will be frozen. This will enable you to make one single regular payment over the period of your Debt Agreement. We will distribute the surplus funds to your creditors after we deduct our fees which will also be approved by your creditors.
Call today for free and impartial debt advice on our toll free line to see if you qualify for a Debt Agreement. We'll discuss your situation in a strictly confidential and empathic manner. Our debt advice professionals will discuss your needs free of charge and our advice will be provided without any obligation.
