Sample letter

No voluntary charge (sole name)

​Use this letter to tell your creditors why you do not agree to a voluntary charge on your home.

Letter in joint names

You can choose to send a letter in your own name or in joint names. You may have a debt in joint names, or want to write to your creditors together because you have worked out a joint budget.
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  • Sign each letter and enclose a copy of your budget if needed.

21 January 2019

Dear Sir/Madam

Account No:

Further to your letter of , I am writing to confirm that I am not prepared to agree to a voluntary charge on my property, as requested by you, in respect of the debt to your company.

As already discussed with you, I have a number of creditors apart from yourselves. To allow you to obtain a charge on my property would be to grant your company preferential status. This could affect my other creditors, of whom have already accepted my proposals without any request for additional security.

In addition, whilst it is not my intention in anyway to be uncooperative, I am not prepared to allow a debt which is currently unsecured to become a secured debt and therefore put my home at risk.

As you will see from my budget sheet, an offer to your company is still open for you to accept. This is based on my income and outgoings and a pro-rata distribution of my available income to creditors. I hope that you will follow the lead taken by my other creditors, and accept my proposals without attaching unnecessary conditions.

Furthermore, whilst of course I wish to avoid county court action, I am aware that were your company to pursue this debt through the county court, the court would look at my circumstances and usually order payments at an amount which I could afford, and in addition would freeze interest on the account.

In light of my other creditors agreeing to my repayment plan, please would you reconsider my offer? I will be making the payments in line with the offer to your company, on a basis, as a gesture of goodwill.

I hope that we can come to a mutually acceptable arrangement that will allow repayment to my creditors at a level which is affordable based on my circumstances.

I look forward to hearing from you.

Yours faithfully