When you are ready to take control of the situation, your first priority should be damage limitation - preventing the problem getting any worse by delaying legal action and preventing escalation wherever possible.

Your basic strategy will depend on whether you need time to find work, sell an asset, or for some other reason. If you are playing for time, you have one overriding objective in all of your communications: all important creditors must remain convinced at all times that you will repay them, just so long as you are given sufficient time and leeway to organise your own affairs, and that pressure from them will make no difference.

If on the other hand you really have absolutely no hope of repaying any significant amounts to your creditors, then there is probably little point in playing for time and the best approach will be a flat admission that you will never be able to repay them (see ‘Insolvency’) and that the matter will be dealt with by the court if no better solution can be found. In this case it is important that each creditor is quite clear that this applies to all creditors, and that there is no point (because you do not have the income or assets) in taking any more drastic action. This step is best taken with the assistance of your Citizens Advice Bureau (or a licensed insolvency practitioner if your business has failed), who will write on your behalf if you wish, including copies of your budget statement to support the letters. 

These letters should be followed up fairly quickly by offers of repayment, no matter how small, based on any meagre resources you may have available. The main object of this exercise is obviously to try to keep your creditors from taking any further action.