Somethings further explained

Financial Statement

We will work with you to compile a Financial Statement. It records the money you receive and how it is spent. It will also show a list of your debts. This is a powerful tool as many of us do not know where our money goes, just that there is none left! If you agree, we use this to show the people you owe money to when we agree a plan. It is in a standard format that is understood by the people you owe money to.

Liaising with creditors

With your permission, we will contact your creditors (the people you owe money to). First we find out how much you owe, ask them to stop adding interest or charges and put a hold on any further action. Then we will contact them again with the plan which we have worked out with you. Usually, while dealing with us, they will no longer contact you directly. We ask them to stop contacting you whilst we help and discuss your options. We ask you sign a Letter of Authority (LoA), which we send to the creditors to prove we are working on your behalf.

Breathing Space

We use this formal arrangement for some situations to pause the collection of debts for 60 days whilst we work to find a suitable debt option for you. It can, for example, prevent bailiffs from taking goods. If we think it will help you we will explain it in detail and ask you to sign an agreement. Mostly creditors will give us time to help you without using this process.

Possible Solutions

Every case is unique and your advisers will work with you to establish the best solution for your situation. Once we have looked at the balance between money coming in and going out we will know if you have sufficient money spare (we call it surplus), to pay your debts. If not, there are alternative solutions that we can look at with you. We will talk through the possibilities with you and make recommendations based on the information you have provided, but the decision will be yours. If you want to see more about this before your meeting take a look at our Extra Resources page.