- A DMP is relatively straightforward to implement.
- We will assess how much you can afford to pay as a single payment per month and negotiate with creditors’.
- Any calls from creditors’ can immediately be referred to us and we will deal with your creditors.
- The arrangement is flexible and it is possible to increase or decrease your payments if your circumstances change.
- Private individuals themselves or with a spouse or partner can apply for a DMP.
- Persons in business as sole traders can apply for a DMP and it may be possible to continue the business.
- Directors of limited companies can apply for a DMP.
- Certain professionals (such as solicitors or accountants) who are barred from practising as a bankrupt can enter into a DMP with the consent of their professional body.
- Interest is sometimes frozen.
- Your home does not form part of the DMP.
- We cannot ‘force’ any creditor to accept your DMP offer.
- Any creditor can take legal action against you without reference to us – even if they appeared to accept the DMP earlier.
- A DMP would not be suitable for business debts. Trade creditors’ or HMR&C in respect of tax liabilities would not participate in a DMP and would simply resort to usual collection methods (ie court, bailiff action).
- There is no write off of any of your debts (your debts do not go away).
- Your credit rating will be affected.
- Interest can sometimes continue to build up.