Sample letter

No voluntary charge (joint names)

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

Letter in sole 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.
  • Fill in your contact details, account number and any extra information you want to include in the grey shaded areas.

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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 , we are writing to confirm that we are not prepared to agree to a voluntary charge on our property, as requested by you, in respect of the debt to your company.

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

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

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

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

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

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

We look forward to hearing from you.

Yours faithfully