I’m in debt with my council tax along with many other credit card and payday loan companies. They all accept £5 a month from me because i’m unemployed but the debt collectors the council have instructed are refusing to negotiate a payment plan.
They just demand i repay the full debt and threat to have me declared bankrupt, but surely they can’t just bankrupt me for £879.54?
Any creditor can apply to have someone declared bankrupt if they are willing to pay the court fees, however in this case it seems like a threat.
Often collection agents will be trained to refuse the first offer unless it’s a full payment but eventually they will start to negotiate.
The best thing you can do is continue to make the regular payments you would like them to accept as an agreement.
So if you want to pay them £5 a month then just call them and offer the payment, even if they refuse an payment plan just keep making the payment. We often find once they see the payments are being made and you’re not going to pay the full amount they change.