Informal Repayment Plans (IRP)
are informal arrangements to repay your company
creditors at a reduced and more affordable monthly
amount.
Although they rely on your creditors’
goodwill to accept the reduced payment and to
freeze ongoing interest, IRPs demonstrate to
creditors that the company, and its directors
and shareholders, are committed to resolving
its debt problems in a planned and sustainable
manner.
Unlike CVAs,
IRPs are not legally binding debt solutions
and as such, are generally considered as a short
term solution.
They can be an ideal debt solution
if, for example, you know that in a couple of
years circumstances will change to the extent
that your company will be able to revert to making
it’s contractual payments to creditors or
pay them back in full.
