Under a Debt Settlement Arrangement debtors who have income, assets and unsecured debts above these thresholds can apply for a Protective Certificate which will provide a standstill period of 30 days in which the creditors cannot take action against the debtor but will consider a repayment plan put forward by a personal insolvency trustee.
If creditors representing 65% of the value of the debt agree to this plan it will become binding on all creditors and a Debt Settlement Agreement will be registered by the Insolvency Service. When the payments agreed under the Debt Settlement Agreement are successfully concluded, the balance of unsecured debt remaining will then be written off.