Is my home at risk if I enter into a Debt Management Plan?
Written by Payplan Ryan on 17 January 2013
Ask Payplan a question… Is my home at risk if I enter into a Debt Management Plan?
If you are a homeowner in debt ensuring your home is secure is one of the biggest priorities; it is because of this that many people avoid bankruptcy. An alternative solution, such as a Debt Management Plan, may be more suitable.
Your home would only be at risk from your creditors if you failed to maintain payments towards your debt, in which case creditors would still need to follow a series of steps. They would firstly need to issue a default notice against your account. If you continue to miss payments, or make reduced payments, they would need to successfully obtain a County Court Judgment. If you then fail to maintain payments towards this they could apply for a Charging Order against your property.
A DMP enables you to repay your creditors at a rate you can afford; we would propose a level of repayment to each of your creditors based on your income and expenditure. Your creditors are then asked to accept the repayment plan. Once it has been set up, as long as you maintain all the payments into your plan as agreed, your creditors are less likely to pursue any legal action against you, however this is not guaranteed.
Filed under Debt Facts