Informal payment agreement can be arranged by either an individual or a company. They involve speaking to all creditors and coming to an agreement on how the debts will be paid back over a period of time. They tend to be used when the amount owed is low, there are only a few creditors and where the debt can be paid back in full over a short period of time.

Though the procedure is often viewed as attractive as they can be arranged by the individual or company themselves and therefore there is no cost in arranging them, they are not legally binding and creditors are often unwilling to enter discussions about arranging them. As such they are not always a suitable option for all.

When are they suitable?

Because of the nature of informal agreements and the fact that most tend to have a pay back period of not more than two years, they are generally used by those that have short-term cashflow problems and a small number of creditors and who have the confidence and ability to negotiate with their creditors.

The benefits of a formal arrangement

A formal payment arrangement is legally binding and is where the individual or company and their creditors agree how much of the debt is to be paid back and over what timescale. The total amount paid back can be less than the total amount owed if the individual’s or company’s circumstances mean a full payment is not possible. An arrangement for an individual is called an Individual Voluntary Arrangement (IVA) and for a company a Company Voluntary Arrangement (CVA).

Another benefit of a formal arrangement is that the insolvency practitioner firm such as Walsh Taylor carries out all the negotiations, meaning the individual or company does not need to have any contact with their creditors if they do not wish to.

It you would like to see if an IVA or CVA is suitable for you please contact Walsh Taylor, who have assisted many clients with them in the past for a discussion. There are numerous reasons why the Leeds, Harrogate, Bradford and Darlington-based teams at Walsh Taylor can be of huge benefit to you.

For more information or for free, confidential advice, please contact us today by calling 03300 244 660.

Mary Taylor

Mary began working in insolvency for a national accountancy practice in Glasgow thirty years ago and worked in most divisions of the insolvency department.

She then moved to a smaller firm so she could advance her knowledge on a more hands on basis. She moved back to Leeds in 1987 and commenced working with a small firm of accountants and subsequently made partner.

She left in 1999 to set up her own practice, McCann Taylor.
McCann Taylor became involved with the consumer market both in England and Scotland.

Mary sold McCann Taylor in March 2007 and formed Walsh Taylor to concentrate on helping businesses experiencing financial difficulties.

Meg Heath

Meg has a background in supporting SMEs, including the raising of finance and advising on organisational change. She is a non-executive director of companies in the private and third sector, including Walsh Taylor.

Previously she was Deputy Fund Director of one of the largest CDFIs in the UK, and has experience of the social enterprise, charity and private sectors. Her experience of assisting companies to survive and thrive has been gained across a broad range of sectors and in companies of all sizes.

In addition to her work at Walsh Taylor she works for other private companies, including non-executive and trustee positions.

Emma Mifsud
Insolvency Practitioner

After graduating from Leeds University in 2005 with a BA Hons degree in Criminology, Emma worked for a regional law firm in both the property department and insolvency and banking department. Whilst doing so Emma gained a Graduate Diploma in Law at BPP University.

Emma then joined a national accountancy firm in 2009 gaining experience in personal insolvency before moving to a Leeds based firm. At this firm Emma specialised in bankruptcies, IVA’s and negotiating informal agreements with creditors. In 2013 Emma gained her CPI qualification.

Since joining the firm in December 2013, Emma has taken on a portfolio of personal and corporate insolvency cases to extend her knowledge and expertise in all areas of insolvency.

In December 2017 Emma become a licensed appointment taker under the Insolvency Practitioners Association, she is JIEB qualified.

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