The other lenders will have to deal with them. The income and expenditure would show that the debts are not sustainable in their current format, and to pay a creditor preferentially, will mean that the other creditors who have not been paid will not accept the repayment offer.
The financial statement would show what is left after ordinary bills, mortgage or rent, and normal living expenses are taken care of. This money should then be divided up between the other creditors on a pro-rata basis.
If for example, the 4k was offered as a settlement to the one creditor who had missed payments, the credit card company, say MBNA in this case, would always do a credit check, and very quickly discover that they are taking a hit on a large amount of money, while other creditors' debts are being serviced. They will not accept this.
Also, while the payments are being made to the other cards, they are probably only the minimum payment, so the debt isn't actually reducing. That's why they need help to get the interest suspended, otherwise the debts would continue indefinitely.
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