If you are struggling to keep up with your personal or company’s regular payments, you can try to negotiate reduced payments or negotiate more favourable terms.
This can be done on a temporary basis, for example, if your income is reduced for a short-time, or this can be done to achieve a more long-term solution.
Our team of experts can represent and negotiate on your behalf, working to reach a mutually acceptable agreement with your creditors. We understand the complexities of creditor negotiations, and we can help you protect your interests and find the best solution for your situation.
A Debt Management Plan (DMP) is an option to deal with your personal debt before having to enter into bankruptcy. This plan is a way for you to informally agree with your creditors how to pay what is owed over a manageable period of time. They are usually put in place either when debts can only be paid off in small regular amounts, or when the debtor needs time before making payments. This system allows creditors to trust that they will receive the funds they are owed, even if it will take longer than first thought, and also takes the stress of the managing the debt away from you.
When a company becomes insolvent and is unable to pay its debts, it may enter into creditor negotiations as a way to manage and address its debts. These negotiations typically involve the company, its creditors, and a qualified professional, such as an insolvency practitioner.
The company will typically initiate communication with its creditors to inform them of its financial difficulties and the steps it is taking to address the situation. This can be done through a formal letter or through face-to-face meetings.
The company will then propose a plan to its creditors outlining how it intends to address its debts, such as through restructuring.
The creditors will then review the company’s proposal and negotiate with the company to come to an agreement on how the debts will be managed.
Once the proposal is approved, the company will need to implement the plan and make payments to its creditors as agreed upon.
In creditor negotiations, you have the option to represent yourself or hire a professional to represent you.
You can appoint a professional who specialices in insolvency to provide legal and financial advice, negotiate on your behalf, and help you understand your rights and obligations.
Your representative will act as a mediator between you and your creditors and help you develop a repayment plan or restructuring proposal.
It’s important to choose a representative who has experience in creditor negotiations and who you feel comfortable working with.
The creditors will review the company’s proposal and negotiate with the company to come to an agreement on how the debts will be managed. This negotiation process may involve some give-and-take from both sides, as creditors may be willing to accept a certain amount of repayment over time or may agree to a restructuring plan that reduces the amount of debt owed.
If an agreement is reached, the creditors will then need to approve the proposal. This may involve a vote, with the level of approval required depending on the type of insolvency proceedings being used.
Once the proposal is approved, the company will need to implement the plan and make payments to its creditors as agreed upon. An insolvency practitioner may oversee this process to ensure that the terms of the agreement are being met.
The cost of creditor negotiations can vary widely depending on the complexity of the situation, the number of creditors involved, and the type of professional you choose to represent you.
Professional fees may be hourly, project-based, or a percentage of the debt being negotiated and if your case involves court proceedings, there may be filing fees and other court-related expenses.
It’s important to discuss fees and costs with your chosen professional before entering into creditor negotiations. We can provide you with a clear understanding of our fees and any other costs associated with the negotiation process.
Exodus Insolvency provided me with exceptional service during a very difficult time in my life. Their team of professionals were knowledgeable, compassionate, and understanding throughout the entire process. They helped me navigate the complex world of insolvency and made it much less daunting. I would highly recommend Exodus Insolvency to anyone who is struggling with debt and needs help getting back on track.
I cannot thank Exodus Insolvency enough for the support they provided me and my business. When I realized I was no longer able to keep up with my debts, I was afraid that my business would go bankrupt and that I would lose everything. However, Exodus Insolvency provided me with expert advice and helped me create a realistic plan to manage my debts. With their help, my business was able to survive, and I am now back on the path to financial stability.
Exodus Insolvency is a lifesaver! After struggling for years to pay off my debts, I decided to seek professional help. I am so glad that I found Exodus Insolvency. They were able to negotiate with my creditors and come up with a payment plan that worked for me. Their team was professional, friendly, and always available to answer my questions. Thanks to Exodus Insolvency, I am now debt-free and able to enjoy my life without the constant worry of financial stress.