The prospect of a visit from bailiffs can be daunting, but there are steps you can take to potentially halt their arrival at your doorstep by engaging in a constructive negotiation for an affordable repayment plan.
Why Negotiate a Repayment Plan?
Whether you’ve received a Notice of Enforcement or not, initiating negotiations for a repayment plan can serve as a crucial step to avert a bailiff visit and avoid incurring additional fees. Even if bailiffs have already entered your premises, it’s not too late to attempt negotiations to mitigate further actions.
The key point to remember is to continue making payments toward your debt, even if you cannot cover the full amount. This proactive approach can bolster your negotiating position with both the bailiffs and your creditors, demonstrating your commitment to settling your debts.
Payment Options:
- Paying the Debt in Full: If you possess the means, consider clearing the debt in its entirety. This approach allows you to eliminate the debt before the bailiffs arrive, avoiding additional charges and the need to manage a repayment plan.
- Partial Payment: If you can only afford to pay a portion of your total debt, contact the bailiffs directly to propose a reduced payment. Surprisingly, bailiffs may accept such offers as they expedite debt resolution, even if the full amount cannot be reclaimed.
- Instalment Payments: If you can’t pay the entire debt, explore the possibility of making regular, smaller payments. This option may be viable, especially if you have a steady income. While bailiffs aren’t obligated to negotiate repayment plans, they may be more receptive if your proposal is realistic and sustainable.
Negotiating a Repayment Plan:
Before initiating negotiations with the bailiffs, construct a budget sheet detailing your monthly income and expenses to determine your disposable income. Share this sheet with the bailiffs, accompanied by a brief letter explaining your inability to pay the debt in full but expressing your willingness to make either monthly or weekly payments.
Consider sending a copy of this letter and your budget sheet directly to your creditor, as they are the ones who initially engaged the bailiffs. The creditor’s contact information can often be found on the Notice of Enforcement or by researching their details online or through Companies House.
When corresponding by post, opt for recorded delivery if possible, or request free proof of postage.
If the bailiffs or your creditor agree to your proposed repayment plan, insist on receiving a written agreement signed by both parties as confirmation.
What to Do If Your Offer Is Refused:
Regardless of the outcome, continue making payments to your creditor whenever possible. Even small contributions demonstrate your commitment to avoiding default and willingness to repay.
If the bailiffs decline negotiations, attempt direct communication with your creditor, who may be more amenable to a partial payment or repayment plan. If your debt falls under County or High Court jurisdiction, you can also apply to the court.
If navigating negotiations becomes challenging, consider seeking assistance from an experienced debt advisor or your local Citizens Advice Bureau, who can mediate on your behalf, assist with budgeting, and determine affordable repayment amounts.
Controlled Goods Agreement:
In some cases, negotiating a repayment plan with bailiffs in advance may not be feasible. If bailiffs have already visited your property and gained access, they may establish a Controlled Goods Agreement. This agreement outlines items that could be removed and sold by bailiffs to recover the debt. However, immediate removal of these items is typically avoided. You’ll retain possession and use of the items while you search for funds to settle your debts, including bailiff fees, or explore options for a new repayment plan.
Facing the possibility of a bailiff visit? The experts at Bailiff Helpline are here to assist you in negotiating a repayment plan. Feel free to call us at 0161 8260 585 or send us a message today.
