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Example Letter to Secondary Creditors

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We have used square brackets [ ] to suggest different points you may want to make. Choose the ones that fit your circumstances and make any other changes you need to explain your situation to your creditors.

For help with writing letters to your creditors see our sample letters section which allows you to complete your details.

Always keep copies of your budget sheet and any letters you send or receive, together with a notebook or diary of telephone conversations you have – make a note of the name of the person you speak to for future reference.

Secondary creditor's name and address

Your name and address

Dear Sir/Madam,

Business Name and address

Account No.

Like many small businesses I am/we are experiencing trading difficulties but feel that with the co-operation of creditors the business may be able to continue trading. I enclose details of the total debts outstanding. Also enclosed is my/our business and household budget sheet, which shows income from all sources and total household outgoings.

As you can see, I/we have [only £…per month] [only £... per week] [no money] left for outstanding debts.

[The offers made to creditors have been worked out on a pro-rata basis] and I/we have written to all creditors asking them to accept [reduced payments] [token payments] [a moratorium for three months].

EITHER
[In view of my present financial circumstances would you please accept payment of £…per month [£... per week]. It would be appreciated if you would confirm that interest will be frozen so that payments will reduce the actual debt]

I would be grateful if you could send me a [paying in book] [standing order form] to make it easier to pay.

OR
[In view of my present circumstances it would be appreciated if you would agree to a three month moratorium to enable me to find employment.]

I am/we are making every effort to increase my/our income and will keep you informed as soon as my/our financial circumstances improve.

I/we ask that you give serious and sympathetic consideration to this proposal and look forward to hearing from you.

Yours faithfully

Signed

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