If the looming threat of bailiffs knocking at your door has you on edge, there’s a glimmer of hope—you can potentially halt their advance through the art of negotiation and secure an affordable repayment plan. Here’s why and how you should embark on this critical journey:
Why Negotiate a Repayment Plan?
Regardless of whether you’ve already received a Notice of Enforcement or the bailiffs are merely lurking on the horizon, engaging in negotiation can be your saving grace. It has the power to stave off a visit from the bailiffs and spare you from shouldering additional fees. Surprisingly, even if the bailiffs have already set foot in your home, it’s not too late to attempt negotiation and circumvent further actions against you.
The key here is to keep making payments towards your debt, even if you cannot meet the entire outstanding amount. This showcases your commitment to resolving your financial obligations and can bolster your bargaining position with both the bailiffs and your creditors.
If You Can Clear the Debt in Full…
If you find yourself in the fortunate position of being able to settle your debt in full, especially if you have the available funds, consider doing so promptly. This approach allows you to eliminate your debt before the bailiffs make their presence felt, sparing you from incurring additional bailiff charges and sidestepping the complexities of managing a repayment plan.
If You Can Only Pay Part of Your Debt…
In situations where you possess the means to pay a portion of your total debt but cannot discharge it entirely, reach out to the bailiffs directly. Surprisingly, they may entertain the notion of a reduced payment as it accelerates debt recovery, even if it falls short of the entire sum.
Contact information for the bailiffs is typically available on the letters they have sent, including the Notice of Enforcement. A phone call is often the swiftest means of communication. If they agree to your proposal, consider making the payment by card or cheque to retain a record. Request a receipt as evidence of payment for added security.
If You Can Make Incremental Payments…
Even if your financial capacity only allows for periodic, smaller payments towards your debts, you might still be in a position to repay a modest sum weekly or monthly, particularly if you’re employed and receive a regular income. While bailiffs are not obligated to negotiate repayment plans, they may be more inclined to accept your proposal if it is both feasible and affordable.
Maintaining affordability is critical. Calculate precisely how much you can comfortably allocate to repayments on a weekly or monthly basis and refrain from overextending yourself. Defaulting on other debt repayments or falling behind on essential bills can exacerbate your financial woes.
How to Initiate Negotiations
Before delving into negotiations with the bailiffs, draft a budget sheet. This document should delineate your monthly income and expenditures, revealing your disposable income. Submit this budget sheet to the bailiffs, accompanied by a brief letter explaining your inability to pay the debt in full but expressing your willingness to commit to regular payments, either monthly or weekly.
Consider sharing a copy of this letter and budget sheet directly with your creditor, as they were the instigators of the bailiff involvement and may be more receptive to your proposal. The creditor’s contact information can typically be found on the Notice of Enforcement or by searching Companies House.
You may dispatch your correspondence via email or traditional mail. If opting for postal delivery, consider sending it via recorded mail or request proof of postage at no cost.
What if Your Repayment Plan Offer Is Rejected?
Regardless of the outcome, continue making payments to your creditor if feasible. Even modest contributions demonstrate your commitment to repaying your debts and avoiding default.
If the bailiffs reject your negotiation attempts, explore direct communication with your creditor. They may entertain the idea of partial payments or a repayment plan, even if the bailiffs have been less receptive. In cases involving County or High Court debt, you can also petition the court for assistance.
If navigating the negotiation process proves challenging, consider seeking the aid of a seasoned debt advisor or your local Citizens Advice Bureau. These professionals can intercede on your behalf during negotiations, helping you create a budget sheet and ascertain an appropriate repayment plan.
Understanding a Controlled Goods Agreement
In cases where pre-negotiation with bailiffs proves futile and they have already entered your premises, they may draft a Controlled Goods Agreement. This document outlines the items that could be seized and sold to recoup the debt if necessary. However, immediate forfeiture is not a given. Upon execution of a Controlled Goods Agreement, you are typically permitted to retain and use the items (although not to sell them). You will also have an opportunity to secure the funds needed to settle your debts and the bailiffs’ fees or to renegotiate a fresh repayment plan.
When facing the specter of bailiffs, remember that proactive negotiation can be your most potent tool in averting further financial turmoil. If you require assistance or guidance, our team at Bailiff Helpline is at your service. Reach out to us at 0161 8260 585 or send us a message today.
