Step 2 Work out your business and household budget

​Working out offers of payment to non-priority creditors

Extra advice:

small offers

Don't worry if your offers look very small. Your creditors would rather you pay a small amount regularly than make promises you can't keep to.

Once you have worked out how much you can afford to pay off your priority debts, see what money you have left over for your non-priority debts. Your budget will work this out for you. If you have some money left, Your budget will divide up the money between your non-priority creditors. This is worked out on a pro-rata basis. This is how the court would do it and means all your creditors get a fair share of the money you have available.

Extra advice:

what to do next

If you are not sure about what to do next, or about the best option to deal with your debts, contact us for advice.


no money left to pay your priority debts?

If you have no money left to pay your non-priority creditors, you still have options.

What if I have no money left to pay my creditors?



What if I already have a county court judgment? 

You should include this debt with your non-priority debts and work out the offer of payment in the same way. There is a box you can tick to say that you have a county court judgment. If you tick the box, you can enter the amount the court has ordered you to pay. If you do not tick the box, Your budget will show you how much a pro-rata offer would be to this debt. If the pro-rata offer is less than the amount the court has ordered you to pay, you may need to apply to the court to reduce the amount. This will mean you are treating all creditors fairly and you are not paying one creditor more than you can afford.

If you need to reduce the amount that you have to pay on a county court judgment, contact us for advice.


What if my creditors take court action?

Are your household outgoings more than your household income?

If your outgoings are more than your income, you should look to see if you can increase your income or reduce your outgoings.

Ways of increasing your household income 

Help with managing your money and budgeting for your household

If your outgoings are still more than your income after doing these things, contact us for advice.