With informal debt settlement, creditors expect you to present them with a plan outlining how you can pay them back. Creditors will often negotiate with you, as their goal is to obtain the money that is owed to them. Explain your financial situation honestly and submit a realistic proposal with a reasonable payment schedule.
If you have more than one creditor you will need to negotiate with each of them individually. Sometimes they can be difficult to connect with or to obtain a response from. You may find 70 per cent of your creditors will accept your informal proposal but others may refuse.
Keep in mind — if you negotiate a longer payment schedule with one or more of your creditors you will likely pay more interest.
Our team of professionals can help you explore the best solutions to your debt problems based on your unique situation.
© 2017 Grant Thornton Limited, Licensed Insolvency Trustees. All rights reserved.
Make an appointment
You can meet with us during our office hours, weekdays from 8:30am to 5:00pm