Informal Arrangement


What is an Informal Arrangement?

An informal arrangement is an informal agreed settlement with creditors where a debtor agrees to pay a reduced sum back until the debt is cleared.

No requirement to involve to the sanction of a county court and the imposition of a CCJ  so are easy to set up and speedy.

Advantages and Benefits

May be able to dismiss a sizeable % of unsecured debt.
Easy to arrange and speedy.
Payment is often based upon a full and final settlement

Disadvantages

Not a legal entity.
Disregarded if a creditor does not agree.
Covering fund had to be in place and available so settlement of the balance may be achieved.
Unmanageable when Debtor is under severe creditor pressure.

What is the procedure for an informal arrangement?

Establishment of debt standing and what funds you are offering in full and final settlement with an AiB Ltd Consultant.

Each creditor receives an equal share of their credit based upon the funds available the debtor holds and is a pro-rata and fair procedure but only if the creditors agree to it.