Sample Debt Settlement Letters - PDF

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					                   Debt Management Plan - step by step procedure

1.   Make a list of your debts (including the creditor account numbers, contact details and amount owed) – see sample


     If some of your creditors have issued County Court proceedings or have judgments against you, seek advice

2.   Make a list of your assets, their values and any mortgages/finance agreements in respect of them (including

     redemption figures) – see sample list

     If after taking into account mortgages, etc your assets have a value in excess of £2,000 and you do not wish to sell

     them seek advice

3.   List your monthly household income (net of tax) – see sample list

4.   List your monthly household outgoings – see sample list

5.   Calculate your available income after payment of your monthly outgoings to get your “Available Income”

6.   Formulate the proposal that you wish to put to your creditors based upon your Available Income and any proceeds

     from asset sales (e.g. to pay your asset sale proceeds and Available Income for the next 3 years to your creditors

     pro-rata according to how much they are owed in full and final settlement of all of your debts – Click Here for

     Sample Offer Letter). The simplest debt management plan is to request a break from interest and charges whilst

     you seek additional income to pay your debts – Click Here for sample holding letter

7.   Write to each of your creditors setting out your proposal and enclosing the lists prepared at steps 1 to 4. If you are

     making an offer to settle the debt, make sure that it is clear in your proposal that it is made in full and final


8.   Await responses and in the meantime continue to make the minimum monthly payments (if you are able)

9.   Once you have received sufficient acceptances to make implementing the proposal worthwhile start making

     payments to those creditors who have accepted in accordance with the terms of the proposal. You will have to

     negotiate further with those who do not accept the proposal. If you simply requested a break from further interest

     and charges make sure you update creditors when your circumstances change or on the date that you said you


Description: Sample Debt Settlement Letters document sample