Affordable Repayment Plan

Affordable repayment plans are a way of paying back your council tax arrears in manageable, monthly repayments, as opposed to one large lump sum.

If you need advice on whether an affordable repayment plan is the best debt solution for you, please request a callback and we will set you up with an expert advisor

How would a council tax repayment plan affect me?

Through negotiation with the local council or debt enforcement agencies, an insolvency practitioner can organise a repayment plan that is based on your income and basic cost of living. The repayment plans are affordable, meaning you can still cover your cost of living while steadily paying off your debts.

In most situations, interest, charges and debt enforcement such as bailiff action can be frozen as long as you stick to the terms of your repayment plan. Failure to stick to the terms of your repayment plan could result in interest and charges being unfrozen, and enforcement action could resume.

Affordable payment plans allow people to regain control of their financial situation, as well as stop harassment from creditors and debt enforcement. This can benefit not just your financial state, but your state of mind.

The charity Step Change said in its 2015 Council Tax Debt Report that after being set up with an affordable payment plan, ‘79% said that their anxiety reduced; 74% are able to sleep more easily’ and ‘60% said it stabilised their finances’.

What are the advantages of an affordable repayment plan?

  • Interest and charges are frozen so your debt will not increase.
  • Your chosen Insolvency Practitioner acts on your behalf and deals with your creditors for you.
  • One affordable payment per month for all of your debts.

What are the disadvantages of an affordable repayment plan?

  • You will still have to repay your current arrears, including charges in interest, in full.
  • If you fail to keep to the terms of your affordable repayment plan, interest and charges may be unfrozen and bailiff action will likely be resumed.

Who is eligible for an affordable repayment plan?

Repayment plans are usually negotiated on a case-by-case basis, but generally to qualify you must be liable to pay council tax and be in arrears.

Once we have begun negotiating your affordable repayment plan with the council will run a Financial Healthcheck to make sure a repayment plan is right for you.