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Debt Management Plans (DMP's)
A debt management plan is an informal arrangement with your creditors which allows you to make reduced repayments to your lenders (creditors) over a number of years.
Payments are made until the debt is cleared in full or until you are able to make the full repayments again.
The monthly repayments are based on what you can afford after a realistic income and expenditure has been drawn up.
Creditors will also want details of your assets, including your home where you own it, so that they can consider whether your offer is reasonable or whether they expect any of those assets to be sold so that they will receive a larger payment towards their debt.
A plan can last for 5 to 10 years or much longer depending on what you owe and how much you can pay each month. Your debt management company should give you an estimate of how long the plan will last. Creditors will expect to be provided with regular updates of your income and expenditure so they can see whether you are able to increase your payments.
The individual or company you choose to manage your plan is required to be licensed and regulated under consumer credit legislation.
If you are not sure about the extent of your problem then try filling in our online Debt Calculator. This will help you calculate how much money you have left over each month to pay your debts (creditors)
Getting in touch with an insolvency expert for free advice is as easy as picking up the phone. Call us on free phone 0800 156 1536. If you would like one our experts to contact you to discuss your financial position and how we can help, please send us your details so we can arrange a call back at a time that is convenient to you.
