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A Debt Management Plan (DMP) helps you to manage your debts and pay them off at a more affordable rate by making reduced monthly payments. It is open to people who are currently struggling with debt payments or feel that their current debt payments will soon become unmanageable or simply too much.
Debt Management Plan Advantages
- Reduced and affordable monthly payment.
- Creditors may reduce or stop interest and charges, but they don’t have to.
- Repays your unsecured lenders and helps you avoid insolvency – secured debts, like your mortgage, aren’t covered and you’ll have to continue repaying.
- The plan does not include your assets.
Debt Management Plan Disadvantages
- The creditors are not legally obligated to agree to freeze interest and charges, unlike an IVA.
- A DMP could possibly increase the total sum to be repaid – reduced payments may lead to a longer arrangement term and will have a negative impact on your credit file
- Your creditors may still take further court action against you, such as a County Court judgment (CCJ).
- A DMP is not legally binding on your creditors as it is ‘informal’.
JT Maxwell Limited, Unit 1, Lagan House, 1 Sackville Street, Lisburn, BT27 4AB.
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Don’t hesitate to reach out to us anytime
How long does negative information remain on a credit report?
Most negative information (like late payments) remains on your credit report for six years. Some information remains longer.
A lawsuit or unpaid judgment against you stays on your report until the statute of limitations runs out or for seven years, whichever period is longer.
A bankruptcy filing stays on the report for 6 years, and a criminal conviction may stay there permanently.
Why would my creditors accept an IVA?
In accepting an IVA, your creditors will expect to get a better return than they would from any other reasonable alternative, and your payment proposals will demonstrate this to be the case. Your creditors will also benefit from knowing your IVA will be managed, monitored and supported by your Supervisor during the term of your IVA.
What to do if you’ve been made redundant and in debt
No matter your situation, if you are struggling to make repayments or find yourself in problem debt and are at risk of redundancy then it can be very scary.
When you contact us, one of our specialists will go through the money that you have coming in and going out (household budget) and then prioritise what you need to pay for. Based on how much money you have leftover each month, and whether you think your circumstances are likely to change, there will be a number of options available to you. Our Specialist will talk to you about each of the available debt options in detail, and how each option will affect your own personal circumstances which will help you decide which is right option for you.
Can I protect my house?
An IVA will protect your home and prevents creditors from taking any legal action against you and your property. You do not have to sell your home in an IVA.
Our aim here at JT Maxwell is to help change the perception of our industry. And the reason for this is simple: we passionately believe that the service which we provide is incredibly valuable, not just for businesses, but also in a personal context.
JT Maxwell Limited, Unit 1 Lagan House, 1 Sackville Street, Lisburn, BT27 4AB.
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