Informal Creditor Agreement

  • Helping you to avoid, through or out of insolvency

What is it?

In cases where a company has a small number of creditors, and needs help clearing business debt and there is no immediate threat of potentially damaging legal action by a creditor.

Who is it for?

Businesses which have a small number of creditors who are in need of a little time before paying. This is on the basis that the business is under no immediate threat of legal action, and there is an opportunity to obtain help clearing business debt.

The Process

Chamberlain & Co can provide guidance on negotiations to achieve an Informal Creditor Agreement for the staged repayment of business debts. However, such informal arrangements, unless very specifically detailed and documented, are not usually legally binding in the same way as a company voluntary arrangement and may last well beyond the five years customarily used as the maximum term for a CVA.


  • Your relationship with the creditors is ongoing and you are in less danger of facing court proceedings
  • A good option if you are suffering from a temporary financial difficulty such as an unforeseeable financial event
  • While your credit rating will be affected by any missed minimum payments under your original finance/service agreements, it will not be affected by the informal agreement itself
  • Professional fees may be minimised


  • Your temporary difficulties may turn into something more serious and involve other creditors
  • As it is not legally binding an Informal Creditor Agreement could falter if any one creditor decides to change their mind about accepting the arrangement
  • The interest on any debt may continue to accrue during an Informal Creditor Agreement

Other Options Available

Company Voluntary Arrangement (CVA), Administration, Creditors Voluntary Liquidation (CVL), Members Voluntary Liquidation (MVL), Compulsory Liquidation (CL)

Company Administration



Company Dissolution


Business Restructure

Get in touch with us today on 0113 242 0808