Debts That Cannot Be Included in DMPs
While a Debt Management Plan can be a great way of paying off your unsecured debt at a more affordable rate, there are some things that can’t be included in your plan. For more information, and how this might affect you, contact PayPlan on for free advice.
What is an IVA?
An Individual Voluntary Arrangement (IVA) is an agreement with the people you owe money to. You make affordable payments over a period of time (usually 5-6 years) and at the end, your remaining debts are written off.
What is a Debt Management Plan?
A debt management plan (DMP) allows you to pay back your creditors each month at an amount you can afford. The DMP lasts until you have repaid your debts in full or your circumstances improve.
What is a Self-employed IVA?
A self-employed Individual Voluntary Arrangement (IVA) is an agreement to pay back what you owe whilst still running your business. You make affordable payments over a period of time (usually 5-6 years) and at the end, your remaining debts are written off.
What is a Debt Relief Order?
A debt relief order is a solution available if you are not able to afford any payments to people you owe to. It freezes debts for a year at which time they are written off if your circumstances have not improved.
What is Bankruptcy?
Bankruptcy is a type of insolvency that involves applying to the court in order to clear your debts. There is an upfront fee and you may be required to make payments from your earnings into the bankruptcy for up to 3 years.
If you’re worried about your debts, PayPlan can help you. Call us now on 0800 280 2816 or, if you’d prefer, click the “Get advice now” button to request a call back.
Secured Debts such as:
- Mortgages
- Secured Loans/ Second Charges
- Car Hire Purchase
Utility Bills:
- Council Tax (Current Bills)
- Water (Current Bills)
- Gas (Current Bills)
- Electric (Current Bills)
Secured debts and Utility Bills are classed as priority debts, therefore they must be paid in accordance with either the original credit agreement (where applicable) or with prior agreement with the company.
For immediate and free debt advice please call PayPlan free on 0800 280 2816 or use our Debt Help Form to submit your debt problem online.