If you’re facing a visit from the bailiffs, you might be able to stop them before they arrive at your door by negotiating an affordable repayment plan

Why should I negotiate a repayment plan?

Whether you’ve already received a Notice of Enforcement or not, negotiating a repayment plan could prevent a visit from the bailiffs and save you from needing to pay additional fees. In fact, even if the bailiffs have already arrived and gained entry to your home, it’s still not too late to try and negotiate and avoid further action.

The most important thing to remember if you plan to try and negotiate a repayment plan is to continue making payments towards your debt, even if you can’t afford to pay the full amount owed. This can strengthen your negotiating position with both the bailiffs and your creditors as it shows you are trying to pay your debts.

If you can pay your debt in full…

If you’ve fallen behind with your debt repayments for whatever reason and are now facing bailiff action, consider paying the debt in full first. Of course, this option only applies if you have the funds available, but if you can take this step, it might be the best choice for you. This way, you can clear your debt before the bailiffs visit, avoid paying any extra bailiff charges, and not have to worry about managing a repayment plan.

If you can pay part of your debt…

You might find yourself having some funds available so you can pay off part of your total debt but can’t afford to clear it completely. In this case, you can try to call the bailiff directly and ask whether they would accept a reduced payment. It might be surprising, but bailiffs can sometimes be receptive to the offer of a lower payment as it gets the debt paid quicker, even if they can’t reclaim the full amount.

The bailiff’s contact details should be written on all the letters that they’ve sent you, including the Notice of Enforcement, and phoning them is often the quickest way to get in touch. If they accept your offer, it’s best to make the payment by card or cheque so that you have a record of it. Be sure to ask them to send a receipt as proof of payment too, just in case.

If you can pay a small amount towards your debts in instalments…

Even if you can’t afford to pay all or part of your total debt, you might still be able to repay a smaller amount each week or month. This could be especially true if you’re in employment and have a regular wage. While bailiffs aren’t required to negotiate a repayment plan with you, they’re more likely to agree to your proposal if it’s realistic and affordable.

Your affordability is an important factor to keep in mind. Take time to work out exactly how much you can comfortably afford to repay each week or month and don’t be tempted to go above this figure. Missing other debt repayments or falling behind with your priority bills will likely only make your financial situation even harder to navigate.

How should I negotiate a repayment plan?

Before starting to negotiate a repayment plan with the bailiffs, create a budget sheet. This should list all the money you have coming in and going out each month and show how much disposable income you have left over. Send this sheet to the bailiffs along with a short letter explaining that you can’t pay the debt in full, but you could make payments either monthly or weekly.

Consider also sending a copy of this letter and your budget sheet direct to your creditor. They’re the people who instructed the bailiffs in the first place, so might be more willing to accept your offer. Their name should be listed on the Notice of Enforcement, and you can track down their contact details online or by looking them up on Companies House.

You can send your letter by email or in the post. If you do choose to post it, be sure to send via recorded delivery, if possible, or ask for free proof of postage.

If the bailiffs or your creditor agree to your debt repayment plan proposal, ask them to send a written agreement as confirmation and make sure it’s signed by both you and them.

What should I do if my repayment plan offer is refused?

No matter the outcome of your repayment plan offer, you should continue to try and make payments to your creditor if possible. You might only be able to pay a small percentage but every little helps, and these payments prove you don’t want to default and are willing to try and make repayments.

If the bailiffs refuse to negotiate with you, try to talk to your creditor directly. They might be willing to agree to a part payment or a repayment plan even if the bailiff said no. You can also apply to the court if your debt is with the County or High Court.

If you’re finding the negotiating process difficult, an experienced debt advisor or your local Citizens Advice Bureau could step in and handle these conversations on your behalf. They can also help you to create a budget sheet and work out what your affordable repayments should be.

What is a Controlled Goods Agreement?

Sometimes you can’t negotiate a repayment plan with the bailiffs ahead of time. If they’ve visited your property and entered your home, they will typically make a Controlled Goods Agreement. This is an agreement made between you and the bailiff and lists all the items that the bailiffs could remove and sell to recover the debt if necessary. However, this won’t happen straightaway. Once the Controlled Goods Agreement is made, you’ll still be able to keep and use the items (but not sell them) and you’ll also have time to find the funds to pay off your debts and the bailiff’s fees or try to arrange a new repayment plan.

Facing a visit from the bailiffs? Our team of experts here at Bailiff Helpline is here to help you negotiate a repayment plan. Give us a call on 0161 8260 585 or send a message today.