How to handle the situation....

• Protect Yourself If you receive court or official papers make sure you are aware of the deadline to respond.
  • Get advice from the Citizens Advice Bureau, a solicitor or talk to us with a view to resolving the issue out of court to prevent further costs.
  • Negotiate claims with creditors or their agents well before court deadlines or try to get the deadline is postponed.
• Be Realistic whilst negotiating a debt.
  • Fill out a statement of means as accurately as possible and don't forget anything such as haircuts, petrol etc.
  • Don't go overboard on expenses, dining out etc. Most creditors are fair and will expect to see realistic figures in your statement.
• Be Polite
  • Don't ignore letters.
  • Return all calls promptly, if only to advise a delay in payment or let them know when a payment is likely to be made.
  • It is your task to persuade a creditor to be sympathetic to your circumstances. It never pays to get angry with them.
  • Be polite and courteous even if somebody is treating you rudely.
• Make it simple Explain the reasons for your current financial situation and come straight to the point.
  • Make a precise offer.
  • Do not leave things open ended such as "things should get better soon, I'll increase my payments if I can". Instead, say "I'll pay that by the end of next week at the latest."
• Don't stand for threats. You do not need to take threats from anyone. The worst a creditor can do to you is obtain judgement against you and take money from you involuntarily.
• If you are being harassed by a creditor or a company employed by a creditor, make a note of their name and report them.
• Don't Threaten Bankruptcy; creditors and their agents hear these types of threats every day and are are likely to become more aggressive, possibly hindering negotiations.
  • Be polite and perhaps infer that bankruptcy is a possible alternative in the event that the creditor does not accept your offer.
• Keep ALL records; invoices, credit card statements, bills etc. along with notes of every telephone conversation and written correspondence.
  • Note the time and date of all communications
  • Note the name of the person you spoke to.
  • Where possible, get all offers made in writing.
• Stick to the truth and don't make promises you cannot honour .
  • Tell your creditors what you can do
  • Tell them what you are doing to improve the situation
  • Ensure you do what you have promised.
• Don't miss deadlines with meeting scheduled payments.
  • Talk to your creditors in advance advising the situation and what you propose to do about it.
  • Try to pay a portion of the payment and propose a means of paying the balance.
  • Do not wait until you have missed a payment to contact your creditor.