What are the alternatives to a debt management plan?
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Ask Payplan… What are the alternatives to a debt management plan?
A debt management plan, or a DMP, is only one solution available if you are struggling to maintain payments to your creditors. At Payplan we understand that a DMP may not be suitable for everyone and we therefore provide all of our clients with a range of solutions that may be suitable for them.
Alternative debt solutions include:
- Individual Voluntary Arrangement, IVA – is a legally binding agreement between you and your creditors.
- Bankruptcy – is a form of insolvency where you will be discharged from all of your unsecured debt.
- Debt Relief Order – is another form of insolvency, this too will write off all of your unsecured debt. A DRO is designed for people with low levels of debt and little or no assets.
- Self Help Pack – this is designed for people who do not have enough surplus or a high enough debt level to enter into a DMP or IVA. They are designed to help you set up your own arrangement with your creditors.
The solutions listed above may not be available at all Debt Management Companies.
This article was checked and deemed to be correct as at the above publication date, but please be aware that some things may have changed between then and now. So please don't rely on any of this information as a statement of fact, especially if the article was published some time ago.