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Example of Offer to Secondary Creditors

Subsections : Priority Debts |Secondary Debts |Fact Sheets |Sample Letters |

Sub pages : What Are Secondary Creditors? | Interest | Free Debt-management Plan | Example of Offer to Secondary Creditors | Example Letter to Secondary Creditors | Example Pro-rata Calculation | Making Payments and Ways To Pay | What If My Creditor Refuses My Offer? | What If Creditors Harrass Me? | What If My Creditor Takes Court Action? | Further Action a Creditor Can Take | Can I Get Credit Again? | Credit Repair Companies |

After paying your outgoings and making arrangements to pay your priority debts, there may be nothing left to pay other creditors.

If you have nothing left, say so. Show your creditors by sending them your budget sheet and a letter to back this up. See our example letter to secondary creditors.

If you have something left, the best way to divide it among your creditors is on a pro-rata basis. See our example pro-rata calculation. This is how the court would do it and means that all your creditors get a fair share of what is available in proportion to the amount you owe them and other creditors.


Don’t worry if your offers look very small. Remember, most creditors would rather you pay a small amount regularly than nothing at all, or indeed make promises you can’t keep to.

Even if a creditor has already taken you to the court, you should include this with the secondary debts and work out the offer of payment in the same way. See What If My Creditor Take Court Action?
  1. Contact all your creditors to find out exactly how much you owe each one.

  2. Add up all the individual debts to find out how much you owe in total.

  3. Divide each individual debt by your total.

  4. Multiply that figure by your money for secondary creditors figure to find out how much you should pay each creditor.

 

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