Paul now only works three days a week and is struggling to find work for the other days. He works in construction and a lot of his work has now dried up.

Their creditors are adding interest and charges to their debts. They keep phoning them and are sending debt collection letters every week asking them to make payments they cannot afford.

Michelle and Paul know they need financial help so they speak with a Personal Insolvency Practitioner about their debt problems and the Personal Insolvency Practitioner offers them free debt advice.

The Personal Insolvency Practitioner sits down with Michelle and Paul and and goes through all their income and expenditure details, afterwards he recommends a Debt Settlement Arrangement as the best debt settlement solution to help them become debt free.

Their Personal Insolvency Practitioner applies for a Protective certificate first of all which gives Paul and Michelle protection from creditor legal proceedings while they are applying for a Debt Settlement Arrangement. This gives the Personal Insolvency Practitioner time to get all their paperwork together so he can make a proposal to their creditors.

A few weeks later the Personal Insolvency Practitioner calls a creditor meeting and Paul and Michelle’s creditors agree to the proposal put forward by their Personal Insolvency Practitioner.

Their Debt Settlement Arrangement has been approved and they will now only have to pay their debt back for 5 years. Under this arrangement 53% of their debt will be written off and their debt repayments reduced down also.

They won’t receive any more letters and calls from their creditors and will not have to worry about unmanageable debt any longer. Their Personal Insolvency Practitioner will administer their Debt Settlement Arrangement for them until their debts are paid off.

An Example of Michelle and Paul’s Debt Settlement Arrangement