Informal Arrangements with your creditors
At Financial Distress Solutions, we have extensive experience negotiating with creditors (including the ATO, banks and finance companies) to achieve informal arrangements or reduced settlements to avoid a formal insolvency appointment. The key issue with getting creditors to accept an arrangement or a reduced amount is being able to demonstrate that they will not achieve a better outcome if they pursue or continue to pursue you via debt recovery enforcement in the Courts.
We have achieved many positive outcomes for clients in circumstances where they were contemplating filing for bankruptcy or placing their company into liquidation. The sooner we are able to get to work, the more likely it will be that we can achieve a good outcome for you and your creditors. We aim to facilitate and negotiate an arrangement on your behalf with each of your creditors to accept either a payment plan or settlement of their debt for a lesser amount. This process, if successful, will avoid the need for a formal insolvency appointment.
Due to our extensive contacts within the major financial institutions, we are able to speak with the decision makers and are able to get a response in a reasonably quick timeframe. We also understand what creditors and financiers require to accept an arrangement. Creditors generally do not want to incur the legal costs of debt recovery action and therefore they are usually open to negotiate a reasonable settlement of their debt if you act early.
If you do act early, it is also possible to avoid having default listings on your credit file which will mean your credit score is not damaged and your ability to obtain finance in the future will be maintained. To speak with one of our debt negotiation experts regarding an informal arrangement, please contact us on 1300 747 577 or complete the Contact Us web enquiry form and we will contact you within 24 hours.